expert
Expert with best answer

Benjamin

100% Recommendation Rate

50 Meetings

467 Q&A Upvotes

USD 319 / Coaching

What is a good generic checklist/strategy/framework to use when cutting costs in a case to think about all the different ways to do so?

Anonymous A asked on Oct 04, 2018 - 2 answers
2 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Benjamin replied on Oct 04, 2018
ex-Manager - Natural and challenging teacher - Taylor case solving, no framework
Book a coaching with Benjamin

100% Recommendation Rate

50 Meetings

467 Q&A Upvotes

USD 319 / Coaching

Hi,

As usual, no predefined framework that can be used everywehere. Common sens will for sure help more :)

If looking for cost reduction, you need to understand :

- what are the main cost of the company : so you need to understand the activity and think about the cost structure it involves. Depending on the business you could identify this with the value chain and / or the type of cost identification (labor, raw material, etc.)

- Focus your effort on the biggest cost categories : this will create more impact in absolute value. eg. 20% saving on 100M€ is better than 20% savings on 1M€ :)

- tackle each category one by one : starting with the biggest cost buckets

Hope this helps

Best
Benjamin

Vlad replied on Oct 04, 2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School
Book a coaching with Vlad

98% Recommendation Rate

350 Meetings

4,992 Q&A Upvotes

USD 319 / Coaching

Hi,

I would recommend the following:

Structuring:

  • What is the cost composition and what are the biggest costs
  • Benchmarking of the biggest costs to find the improvement potential
  • Process improvements to meet the benchmarks
  • Costs and benefits of the proposed initiatives

The key concepts that you have to learn:

  • Internal / external benchmarking
  • Idle time
  • Core processes (usually are optimized) and the supporting processes (usually are cut)
  • Math structures (Frequency of operations * time per operation)
  • Other useful structures (e.g. people - process - technology)

Feel free to reach me for further help with these cases.

Best

Related BootCamp article(s)

Interviewer-Led vs Candidate-Led cases

Case Interviews can be led by the candidate or by the interviewer: In Candidate-led cases the main challenge is the structure. In Interviewer-led cases the main challenge is to adapt quickly

Related case(s)

Bain case: Asian lubricants producer

Solved 94.8k times
4.7 5 27141
| Rating: (4.7 / 5.0)

LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). ... Open whole case

Bain Case: Old Winery

Solved 33.6k times
4.4 5 896
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. ... Open whole case

McKinsey Questions

Solved 31.7k times
4.5 5 830
| Rating: (4.5 / 5.0) |
Difficulty: Intermediate | Style: Fit interview | Topics: Personal fit

Tell me of a situation where you had an opinion and no one seemed to agree with you. What was your goal when you decided to join university / work / clubs / a sports team? Did you have a goal that you were not able to reach? What did you do? What do you want to be remembered for and how are you a ... Open whole case

BCG Questions

Solved 21.3k times
4.5 5 182
| Rating: (4.5 / 5.0) |
Difficulty: Intermediate | Style: Fit interview | Topics: Personal fit

What arouses your interest when you are working / studying / doing another activity (from the CV)? Tell me of a time where you had no idea what you were doing. When did you use an uncommon approach to do something? Have you ever had responsibility for other people? Tell me of a situation where y ... Open whole case

Bain Questions

Solved 20.9k times
4.6 5 261
| Rating: (4.6 / 5.0) |
Difficulty: Intermediate | Style: Fit interview | Topics: Personal fit

Tell me about a difficult situation you had to cope with. Tell me of a task which you didn’t like doing and explain why you performed it nevertheless. Why do you do things? What do you like doing most / What is your favorite hobby? Walk me through a situation where you showed leadership skills. Open whole case