Page 27 - Cost

D. Cost Reduction Consultancy Services

Backdrop:

Consultancy services on operations analysis are well –known to the European food industry.
Tey help the companies in cost reduction procedures by providing innovative ideas, and cost
saving alternatives with respect to manufacturing aspects.

Objective:

• Consultancy service units facilitates in cost reduction and increase proftability.
• It fexibly assists companies with advising, training and implementation.

Methodology:

Tey assist the company manager who is under pressure to deliver top results in a short time
by providing him with new recommendations, leads and ideas for technical cost reduction and
increased proftability.

Te methodologies that were carried out are as follows:
• Six Sigma Approach
• Lean Technique
• Innovative Cost Reduction Audit (ICR-Audit), a diagnostic tool, designed.

Applicability:

In a Business Group, if a separate unit for Cost Reduction Consultancy services can be set up
consisting of an expert team, having in-depth knowledge of costing, then it would help to curtail
cost and wastages, increase efciency, productivity and proftability per department or Business
units through continuous examination and applying suitable approach or techniques. It will
also reduce the extra pressure of top managers in planning and bringing competiveness of their
business.

27 www.icmai.in The Institute of Cost Accountants of India