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Cost Reduction

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Cost reduction refers to measures implemented by a company to reduce its expenses and improve profitability. Cost cutting measures are typically implemented during times of financial distress for a company or during economic downturns. They can also be enacted if a company’s management expects profitability issues in the future, where cost cutting can then become part of the business strategy.

Shareholders who seek maximum monetary returns on their investments in a company expect that management will maintain growth in profits. When the business cycle is on an upswing, companies are generally able to generate profit growth. However, on a downswing, profits may fall and if they stay down for prolonged periods, management would feel the pressure from shareholders to cut costs in an effort to prop up the bottom line.

Cost reduction measures may include laying off employees, reducing employee pay, closing facilities, streamlining the supply chain, downsizing to a smaller office, or moving to a less expensive building or area, reducing or eliminating outside professional services, such as advertising agencies and contractors, etc.

Implementing new technology can also be seen as a cost cutting method. For example, a new machine may replace a certain number of employees, cutting labor costs, where the cost of the machine is made up after a certain period of time of not incurring labor costs.

Good costs focus on the company’s growth and are aligned with the company’s customers and how to meet the needs of those customers. Bad costs are those that do not match up with the company’s growth strategy, and waste resources. When bad costs are cut, they can free up resources that can be used in a more productive capacity. Best costs are the costs associated with what makes a company unique, how it differentiates itself from the competition, and how it provides true value to its customers.

Because salaries and wages are such a large expense, many companies look to layoffs first as a cost cutting measure when times are lean. However, there are many real or potential costs associated with firing people, including severance pay, unemployment benefits, rehiring costs, wrongful termination lawsuits, lowering of morale, and the risk of overworking remaining employees.

This cost structure template will be primarily useful for company leaders when preparing a company’s cost module strategy and for presenting cost saving opportunities. You can use the slides in this template to help you prepare a general cost-cutting plan for your company.

Crisis managers can use this template when preparing activities to take the company to a profit. Financiers and economists can use this template when preparing a cost reduction report. University professors can use this template to prepare a course on cost management or cost reduction in manufacturing.

Our cost reduction slides is a set of professional and modern templates that contains five stylish and fully editable slides. You can independently change the type and size of the font, color and position of the infographic. This template will be useful for startups, financiers, economists, company executives. The Cost Reduction template will complement your old presentations and will be a worthy addition to your collection of professional presentations.

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Home Collections Financials Cost Reduction PPT Template

Free - Cost Reduction PPT Template and Google Slides Presentation

Free - Cost Reduction PPT Template and Google Slides Presentation

Cost Reduction Presentation Slide

Features of the template.

  • 100% customizable slides and easy to download.
  • Slides are available in different nodes & colors.
  • The slides contain 16:9 and 4:3 formats.
  • Easy to change the colors quickly.
  • It is a well-crafted template with an instant download facility.
  • It is a 100% pre-designed slide.
  • This slide is compatible with Google Slide Themes.
  • It has an excellent design to present your idea.
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Cost Reduction Process Consulting Toolkit

Cost reduction process consulting toolkit presentation, free google slides theme and powerpoint template.

In order to reduce costs and optimize al processes of a company, a thorough plan must be set. With this professional template for business consulters, you can present a strategy that will make your clients reach success! Speak about project plans, Ansoff matrixes, risks impact and cost reduction in the 53 creative slides we have included, they are all completely editable so you can adapt them to each company’s needs.

Features of this template

  • 100% editable and easy to modify
  • 53 different slides to impress your audience
  • Contains easy-to-edit graphics such as graphs, maps, tables, timelines and mockups
  • Includes 500+ icons and Flaticon’s extension for customizing your slides
  • Designed to be used in Google Slides and Microsoft PowerPoint
  • 16:9 widescreen format suitable for all types of screens
  • Includes information about fonts, colors, and credits of the resources used

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Cost Optimization

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Want to identify the highest impact areas to save costs across your organization? The Cost Optimization presentation template helps organize potential cost reduction initiatives to uncover which will bring the greatest reward with the least impact to business efficiency and quality. In place of cost reductions made across the board, Cost Optimization helps execs identify the best opportunities to reduce costs that generate the highest return on investment.

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Want to identify the highest impact areas to save costs across your organization?

To identify the highest impact areas to save costs across your organization, you should focus on the following: 1. Operational Efficiency: Streamline processes, eliminate waste, and automate tasks to reduce operational costs. 2. Supply Chain Management: Negotiate with suppliers for better rates, consolidate purchases, and optimize inventory to reduce supply chain costs. 3. Energy Efficiency: Implement energy-saving measures to reduce utility costs. 4. Technology and Automation: Invest in technology and automation to reduce labor costs and increase efficiency. 5. Outsourcing: Consider outsourcing non-core activities to reduce overhead costs. 6. Employee Training: Invest in employee training to increase productivity and reduce errors, thereby saving costs. Remember, the goal is not just to reduce costs but to do so in a way that maximizes return on investment and minimizes impact on business efficiency and quality.

The template includes slides on Cost Categorization, Cost reduction benefit matrix, Cost-saving initiatives and Effectiveness of initiatives, Cost reduction opportunities, Expense management timelines, Robotics potential, TOWS matrix, Cost reduction areas and Value creation, and many more. Plus, read to the end to learn how SpaceX turned cost optimization into a $100B market cap company.

Tool highlights

Cost categorization.

To optimize your organization's cost, categorize what they are and their level of importance. This cost categorization slide features a pie chart, linked to Excel, which breaks down the four categories of cost that every organization encounters. They are:

  • "Not required" costs are those that can be eliminated or cost reductions that cost more than the organization saves due to sacrifices to quality that increases churn. These should be pared down or eliminated completely.
  • "Differentiating capabilities" are costs that provide a competitive advantage or core competency. These are okay to spend more on because it sets you apart.
  • "Lights on" costs are the day-to-day operational costs like rents or utilities. These costs should be reduced to the "best in class cost level."
  • "Can't avoid" costs are the cost of doing business. Execs should also aim for best in class cost level with these. (Slide 6)

Cost reduction benefit matrix

To identify which costs to optimize, use this cost reduction benefit matrix. Each row lists out different cost reduction opportunities. Each is assessed across its financial benefit, time invested, possible risks it could pose to the business, and how much financial investment is required to make the change. When execs see all of the input and output required for each individual cost reduction, they can easily decide which areas are worth the investment to optimize. (Slide 4)

Effectiveness of initiative

Next, use the results from the cost-benefit matrix to plug proposed reduction initiatives into this effectiveness curve to determine if they are a win or not. In this example, initiative B is a clear win, which means it should unquestionably be pursued because it reduces costs and overall efficiency and quality. Initiative A is worth the trade-off, which means it can generate high effectiveness and should be pursued, but it's not as clear of a benefit because it could require more work. Think of this as a high-risk high-return situation. A and B are no-regret moves, but initiative C is a last resort move, which means it can be pursued but might not result in cost optimization due to cut corners that cost revenue as a result of lower quality output. (Slide 8)

Cost reduction opportunities

This slide maps out cost reduction opportunities that correspond to specific parts of an income statement. Execs can plug in the relevant data from their income statement to the linked spreadsheet. The equation calculates what comes in minus what goes out to find the economic value-added. Examine each component to find what challenges it shows, how these challenges can be improved, and the potential results that can be gained if the improvement is made. (Slide 20)

SpaceX business case study

SpaceX is now the second most valuable private company with a valuation of $100 billion, all based on cost optimization. Between 1970 and 2000, the cost to launch a kilogram to space averaged around $18,500 dollars. Elon Musk started the company to minimize the cost per launch for low Earth orbit satellites. At the time, the cost of raw materials on the commodity markets was only 2% of the total cost of a rocket — a major cost reduction opportunity. But the key to SpaceX's cost optimization was its differentiating capability to make rockets reusable.

The Falcon 9's booster can re-enter the atmosphere, land, and fly again, which lowered the cost per kilogram into space to only $2,720 — a near 7x decrease. These boosters have launched 141 times, with certain boosters landing 11 times. At the most recent tally, the Falcon 9 costs $28 million per rocket, while SpaceX's satellite rideshare program can cost buyers as little as $1 million per launch. A fully reusable rocket could bring the total cost per rocket launch down to $2 million with Starship, which can carry over 100 tons. While Falcon 9 can currently carry 60 satellites per launch, Starship could carry roughly 240. This would lower the cost per kilogram to $22 dollars. This would be a clear win, zero-regret move.

If your organization needs to identify the right costs to optimize, you need this presentation. To download the full Cost Optimization presentation template and customize it, become a You Exec Plus member. You'll gain more slides on Cost saving initiatives, Cost reduction opportunities, Expense management timelines, Robotics potential, TOWS matrix, Cost reduction areas and Value creation, and many more to save time and hours of work.

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Cost Reduction Slide Design for PowerPoint

PPT Slide Template for Cost Reduction Methodologies

Download and customize our creative Cost Reduction Slide Design for PowerPoint to present your company’s cost reduction methodologies. Cost reduction refers to minimizing the operational and processing costs to increase the overall profit. These costs can range from office expenses to surplus supply charges. In lean methodology, it is very important to discover the corners in the business where this cost reduction can be applied. Thus, there can be several ways for every company to reduce the excess costs that help them generate more revenue. This PowerPoint template provides an editable infographic diagram to showcase the cost reduction possibilities.

The first slide of the Cost Reduction Slide Design for PowerPoint shows four diamond shapes representing the four ways of cost reduction: 1- Reduction in transport expenses, 2- Cut supply cost, 3- Lower office space cost, and 4 – Switching to cloud. The four shapes are colored and show grey arrow-shaped extensions with meaningful clipart icons for respective titles. For instance, cart shape icon for transport cost reduction, chairs for office space cost cutting, etc. These shapes are further marked with numbers and editable text areas to add details. Users can customize this slide with appropriate headings according to the requirements. The second slide is a three-step timeline design with diamond shapes attached through thin colored lines.

The diamond shapes in this timeline slide carry clipart icons that the presenters can replace. The curved arrowheads between the shapes on alternate sides indicate continuity or process flow. Users can add titles and details to each segment using the editable text areas. The same set of slides is available with a black background variant. Also, the presenters can adjust the color scheme and font style to match their presentation theme. So, download this PPT template and prepare an engaging cost reduction presentation to demonstrate your company’s cost-cutting strategy.

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    Cost Reduction PowerPoint Template. Our Cost Reduction PowerPoint Template is an editable timeline diagram to indicate the implementation phases of a cost reduction strategy. Cost reduction is an essential part of agile, where all the business segments are closely monitored for productivity and, based on this analysis, are financially prioritized.

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    The first slide of the Cost Reduction Slide Design for PowerPoint shows four diamond shapes representing the four ways of cost reduction: 1- Reduction in transport expenses, 2- Cut supply cost, 3- Lower office space cost, and 4 – Switching to cloud. The four shapes are colored and show grey arrow-shaped extensions with meaningful clipart ...

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