ABC Products Company Cost Savings Program
Cost Savings:·
The task of overseeing the program’s cost savings initiatives will be the responsibility of the Chief Financial Officer executed through tracking of the specific department of functional groups proposals.
The main focus of these initiatives needs to take net profit into account and target a payback period (ROI) of 3 years or less.
The CFO will coordinate with the finance department to assist employees from functional groups calculate cost savings and avoidance opportunities. Incentive Programs:
Instant Awards could be provided for thoughtful suggestions by an individual or group. These instant rewards could include movie tickets, gift cards, or other small novelty items.
The company incentive should be a two tier production based reward.
The base reward should be an annual incentive program based on whether the company as a whole met their annual production or profitability targets. The targeted award should be around 5% of their annual pay.
The second tier although smaller should focus on specific product lines, a geographic area, or function of the business and awarded quarterly based on meeting company approved targets or cost reductions. This incentive should target …show more content…
1. Create a pleasant working environment, encourage the team to keep the area clean and organize by using the 5S concept. Rather than spending money, the management can recognize each division for cleanliness and organized arrangement. Every week (Friday 1pm) give half an hour time to organize their workplaces. Give a gift or verbal recognition to the each division by the top management. 2. Top management commitment, they can walk through production area and office area every week and comment on cleanliness and organized arrangement. 3. Safety in the workplace. Reward program for employee. Start counting accident free dates, recognize the team by providing lunch after 183 days safe
Cost Savings:·
The task of overseeing the program’s cost savings initiatives will be the responsibility of the Chief Financial Officer executed through tracking of the specific department of functional groups proposals.
The main focus of these initiatives needs to take net profit into account and target a payback period (ROI) of 3 years or less.
The CFO will coordinate with the finance department to assist employees from functional groups calculate cost savings and avoidance opportunities. Incentive Programs:
Instant Awards could be provided for thoughtful suggestions by an individual or group. These instant rewards could include movie tickets, gift cards, or other small novelty items.
The company incentive should be a two tier production based reward.
The base reward should be an annual incentive program based on whether the company as a whole met their annual production or profitability targets. The targeted award should be around 5% of their annual pay.
The second tier although smaller should focus on specific product lines, a geographic area, or function of the business and awarded quarterly based on meeting company approved targets or cost reductions. This incentive should target …show more content…
1. Create a pleasant working environment, encourage the team to keep the area clean and organize by using the 5S concept. Rather than spending money, the management can recognize each division for cleanliness and organized arrangement. Every week (Friday 1pm) give half an hour time to organize their workplaces. Give a gift or verbal recognition to the each division by the top management. 2. Top management commitment, they can walk through production area and office area every week and comment on cleanliness and organized arrangement. 3. Safety in the workplace. Reward program for employee. Start counting accident free dates, recognize the team by providing lunch after 183 days safe