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1.Current Situation 2.Goals 3.Cost-Cutting 4.Productivity Forecast 5.Action Plan Outline
Production costs are 40% higher Current Situation
Increase productivity Boosts profits by 4 billion euros Cut costs by 7 billion euros Increase competitiveness Become one of the world leading car manufacturers Goals
Five-day week and standard salaries Lean manufacturing Process improvement Option A: Open a factory in India Option B: Purchase spare parts from China Cost-Cutting at EA
Age of employees
Cost cutting plan
1) Implement lean production 2) Reduce salaries 3) Renegotiate prices with suppliers 3) Reduce number of senior employees 4)Job cuttings (If necessary) 7 Billion Euro savings are possible! Action Plan
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