Reducing costs using the Pareto Principle
It was found that this principle, known as the 80/20 rule, could be applied to almost all other distribution scenarios including spend. Applying this principle to the total expenditure of a company on its purchases identifies the items that the procurement process can focus on to reduce their spend.New
11 students enrolled
Created by Joseph Enright
What you'll learn
- How to effectively target areas for cost reduction in your business or department
- How to solve problems with overspending using effective techniques
- How to structure projects correctly, setting you up for measurable success
- How to execute cost reduction projects while controlling schedule and budget
- Students will already have basic excel skills
- Students will already have a set of cost data or a budget for their business or department
You'll learn how to analyse your costs in a practical way that identifies the key areas to address for the best return on time invested.
The basis of this is selecting the right projects to reduce your costs, executing them in the right way, and measuring the results.