Define the purpose and goal behind the cost reduction in the upper left corner
Map the primary waste categories in which expenditure can be reduced on the X-axis.
Map the business processes on the Y-axis.
Understand how each business process contributes to the waste category and develop waste reduction objectives. Include waste reduction targets (KPI’s).
Cascade each intersect into 2nd level matrices and break-down the waste category into the cost reduction program objectives on the X-axis.
Map the primary business process inputs on the 2nd level Y-axis.
Develop waste reduction initiatives in the intersects, including KPIs and milestones.
Focus efforts on the biggest cost drivers.
When designing cost reduction initiatives, focus on those that can increase efficiency.
Involve internal stakeholders to better understand what will change.
Good waste reduction initiatives can have an impact on multiple objectives and can be linked to multiple intersects in the cost reduction matrix.