Cost Improvement is a structured approach providing a goal-oriented cost analysis developing a medium- to long-term strategies for cost reduction and cost savings, for example, process optimization, enterprise-wide spend management, working capital management, shared service centers, or outsourcing.
Cost improvement involves defining improvement targets and a structured approach for identifying improvement opportunities. Systematic cost improvement entails the optimization of business processes and consequent changes in business structures. Project timeframes can be short, but they are expansive as well, covering the entire cost base.
A professional project management approach enables a business to identify and realize potential permanent cost improvements. Cost improvement makes a material impact on the two largest components of total costs: direct labor and third-party services (e.g., contract outsourcing of maintenance or logistics services). Thomas Group’s deep expertise allows for a multi-phased approach to operations and process management.