Business Cost Savings

Business Cost Savings

The ‘Fresh Eyes’ ApproachTo Saving Money

The ‘Fresh Eyes’ ApproachTo Saving Money

Unlocking Your Savings Potential

• Privately Owned Corporation based in USA, UK & France– Established in USA in 2008– Established in UK & France in 2010

• Supply Products & Services to Major Customers in Many Industries – Including Oil, Gas, Drilling, Automotive & Medical

• Licensing Agreements in Marine & Renewable Energy Industries• Experts in Program Management, Sales Representation, Product

Launch, VA/VE, Cost Savings, Strategic Planning & Business Promotion

• Experienced Senior Team has 65 years total Experience in Industrial, Automotive and Commercial Markets

• Extensive Sales, Marketing & Program Management Experience in North America, Europe & Asia

• Global Network of Support Contacts• Full Professionally Indemnity & Public Liability Insurance

Welcome to Mechanical Integration

Selection of Supported Companies

Global Locations

The Goal Eliminate Waste – Retain Value Improve Business Efficiency Free Cash from Balance Sheet Create Leaner Supply Chain Establish Improved Vendor Base Enhance Overall Profitability Establish ‘Savings Culture’ Prepare Organization for the Future Create Platform for Growth Consolidate Materials Complexity Reduction

‘Fresh Eyes’ Approach to

Generating Cost Savings for Your

Business…

3 Areas of Focus –

‘Materials’ – Everything that is a Component or Sub-assembly for Products

‘Expenses’ – These Relate to Equipment, Operations, Factory Overheads & All Other Costs Involved in Producing Products

‘Labour’ – The Costs of the Employees used in all Areas of the Business (Buying, Selling, Producing, Maintaining, Financing, etc.)

‘Fresh Eyes’ Focus

Cost

Labour

Expenses

Materials

‘Fresh Eyes’ Approach The MI ‘Fresh Eyes’ Approach is to ask –

How would WE design the products? How would WE source the components? How would WE manufacture the products? How would WE distribute the products to your customers? Which areas of the business show ‘Gaps’ – i.e. Areas that require

improvement to become ‘World Class’? Which areas of the business would give YOU payback from

improvement investments?...and Why? What efficiency improvements are there in ANY area of the

business? Where is the ‘Low Hanging Fruit’?

How do YOU ‘Pick-it’ from the Tree? How does the company SEE the Savings?

Target Setting

Choose Achievable Targets No Saving is Too Small No ‘Sacred Cows’ Implement ‘Invest to Save’ Thinking Breakdown Large Projects into Smaller Tasks Reward Project Success Time Factor Affects Savings Targets Categorize by Value, Time to Implement & Resources

(Use A,B,C,D Idea Classification)

‘Fresh Eyes’ Idea Categorizing

DCBAHigh

Return

Low Return

Easy to do

Hard to do

Work Shop

Categorize Ideas

Report to

Client

TimetableImpleme

nt Ideas

Realise Saving

s

The Savings Implementation Process

MI Guidance

Client Implementation

Slide masterCost Savings Implementation Team

One Project Leader per Project Multi-Function Team or MIE Team* Plan Driven Regular Reviews & Updates Management/Consultant

Involvement Maintain Positive Momentum Celebrate Success

Study & Identify

Procurement• 9 Elements for Review• Require: Purchasing, Finance

Supply Chain• 6 Elements for Review• Require: Purchasing, Finance

Engineering/Admin/VOH• 8 Elements for Review• Engineering, Management

Production• 14 Elements for Review• Production Team

Materials Management• 5 Elements for Review• Require: Materials, Purchasing

Customer• 10 Elements for Review• Sales, Customer Service

Case Study 1

Multi-national Conglomerate Headquartered in USA Trying to Improve Shareholder Return Started Multi-level Cost Savings Approach

Immediate (Quarter to Quarter) ‘Low Hanging Fruit’ Identified Quickly Category ‘A’ Ideas (‘A’ = Easy to Implement) Pursued

Long Term (1 Year) More Complex Projects Larger Value Projects

Immediate Savings Netted - $185,000 Long Term Savings Netted - $1,200,000

Case Study 2

Global Industrial Company in Central Europe Trying to Stabilize Supply Base

Reduce Purchased Price Costs Be Compensated for Global Raw Material Increases

Increasing Profit Margin Essential for Survival Significant Portion of Sales Price is Material Content Small Net Income Business Any Vendor Increase Eliminated Profit

Long Term Savings Netted - €703,150 ‘Single Event’ Savings Netted - €48,103

Questions for You?

Have We Captured Your Interest? Do You Strive Every Day for Improved

Profitability? Do You Want To Release Cash From

Your Balance Sheet? Do You Want An Improved Long-term

Vendor Base? Do You Want More Control Over

Value? Do You Really Know The ‘Real Cost’?

…and Did We Forget to Mention…

There is ZERO Cost to Your Organization

Mechanical Integration Only Wants to Share in Your Success

Implemented Savings are Shared

ZERO Fees From Mechanical Integration Through the Process

ZERO Risk to Your Organization