ANALYSIS CHECK LIST Potential Areas of Saving When undertaking work to compile Brown Papers, it is essential that all members of the team are CONTINUALLY and CONSISTENTLY obtaining information (financial or otherwise) to QUANTIFY and QUALIFY the Business Case. When compiling the Brown Paper, the above-referred information must be obtained and discussed with the Analysis Manager. It is necessary to ensure that: 1. We understand the scope of the work to be carried out 2. We understand and agree on the decision process for the area(s) being reviewed 3. | We look for savings (both measurable and non measurable) Some examples of where measurable and non measurable savings can be made are listed below: Staff * Clearly defined roles and responsibilities © POPS * Reduce overtime « Reduce personnel costs through stable workforce « Improve ratio support people to production and/or other areas « Schedule holidays - key people not all away all at once © Training requirements * Individual productivity (design tasks, performance expectations, distribution of unprocessed work, responsiveness of supervisionAdministrative Systems controls and IT Accounts receivable and payable Buying controls (planning against controls) Third party suppliers Financing costs Consolidation or elimination of duplicate or meaningless paper work Analyse sales structure — paperflows Invoicing procedures Reporting systems Payroll Sales opportunities Production / Distribution Units per man hour Full utilisation of man hours Analyse overtime situation Consolidation of shifts (if applicable) Better quality control Reduce inventory of Work in Progress Reduce need for additional storage facilities Reduce the need for additional equipment Lower labour costs of transportation (shortening of supply lines) Proper levelling of capacities Realignment of machinery Reduction of overrun Effective scheduling Scheduling of set - ups Individual productivity costs Matching of production to sales Wastage Critical material for productionProduction / Distribution (cont.) Cycle times Packaging times / costs Outsourcing Order processing Handling Packaging Warehousing / Stock Reduce raw material and finished goods inventory Inventory location system Location of faster and slower moving items Re-order points in inventories More efficient use of storage space Economic cuts - sharing Obsolete stock Stock rotation Transportation Lower costs Improve scheduling Routing Fleet management Maintenance Central maintenance control Parts availability for equipment — (minimise downtime/lost time) Log books on machines/equipment to locate historic problems and pinpoint areas of corrective actions Analysis of capital expenditure versus costs of maintenance Visual check lists (to install) Benefits of Outsourcing