Monthly Archives: October 2010

The unicist algorithm for cost reduction in business

Cost reduction has two different contradictory purposes: it can be necessary to survive in crises or it can be a way to increase productivity.

The unicist algorithm was developed to use cost reduction as a necessary approach for business expansion. Therefore it is necessarily a relative approach. It implies reducing the cost of something that is being produced and sold.

The first step to reduce costs is discovering who the beneficiaries of these costs are. They might be internal beneficiaries, members who are in a comfort zone and do not want to face the increase of productivity.

Beneficiaries, whoever they are must be managed in order to make a cost reduction possible. This is the most complex aspect of cost reduction because the benefits people obtain from existing costs are mostly very subtle.

Value Analysis provides the necessary hard solution after the beneficiaries are under control. Value analysis implies considering the utility, functionality, redundancy and opportunity of the work processes.

Cost reduction to increase productivity is possible when the beneficiary analysis and the value analysis demonstrate that it is possible.

This algorithm is not applicable in cost reductions for survival.

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Peter Belohlavek

NOTE: The Unicist Research Institute is the major research organization in the world in its specialty based on more than 3,500 researches in complexity science applied to individual, institutional and social evolution. The applicative researches are based on the discovery of the Ontogenetic Intelligence of Nature and the consequent Unicist Theory of Evolution.