Cost Reduction Technique evaluating large volumes of data with great success.

1. Cost Reduction Tool #1
(Volume Analysis )
Brought to you free by- Turner and Turner LLC

2. Overview
Over a four year period I was able to identify and recover over 100M USD for a
large corporation. This is not typical but possible.
Covered in this presentation is one of the techniques used to cultivate and clear
large volumes of Purchases.

3. Volume Technique Step #1
Isolating Likely Overspends
The Task:
Use rule of thumb estimates to quickly sort through all purchases.
How to do it:
Develop generic cost groups of purchases. Trend costs for each group
should become apparent. Use a 30% reduced cost qualified to weed out
the top likely candidates for overspend.
Example:
I estimated that all widgets should have 100K in tooling to make small
ones, 200K for Medium, and 500K for large ones.
I lowered my estimates by 30% and isolated all widget tooling costs that
exceed my estimates.

4. Volume Technique Step # 2
Amplify Your Efforts
What you are doing:
Amplify and Quantify your efforts by giving direction to the company’s
being audited. You want to shift the man-hours for the bulk of the analysis
work to the supplier thus “force multiplying” your ability to do the work.
How to do it:
With as few words as possible, circulate mass questioning on the cost
overages. Make it sound like an accusation and don’t give them a lot of
time to plan a response. Tell them to feedback information to you in a
format that allows you to quickly go through the data.
Example:
Email to Bob’s widget manufacturing : Tool # 29899303 is 30% over cost
budget. I need the numbers explained or reduced. You have 24Hrs to
respond or I push the debit through the system.

5. Volume Technique Step #3
Work Hard
What you are doing:
Pushing through data at breakneck speed.
How to do it:
If you have the drive and experience you should be able to go through
mountains of data relatively quickly.
Example:
Most people save two to three dollars for every dollars spent on their
service. So if a guy makes 1K a week you should expect 3K on average
weekly savings.
I have been able to reach $120 an hour giveback per dollar spent and
can do so again when the conditions are right. I would suggest that
if you are not seeing these types of results you should contact my
company to arrange outsourcing of the process. I do it remotely for
companies already with outstanding results.

6. Summary
To utilize this techniques you must first isolate probable
overspends, leverage the suppliers man-hours for
analysis, and do the work.
I take a great deal of pride in this type of work and wish
all the best for those who also do it for a living.
In the near future, I will be publishing a “How To” guide
for enabling Cost Reduction groups that you will be able
to hand to your management.

7. If you have any questions or comments please contact me at the following:
E-mail TomTurner@TomTurner.BIZ
Website TomTurner.BIZ
Other free content can be found on my website so please stop in and take a
look.
All my best
Tom Turner - Owner T and T LLC