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Cost reduction and cost cutting

Finding EUR 10 million of savings

Prints the prompt and every part you have revealed so far.

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Cost buckets and benchmark gaps for the Czech plant
Cost buckets and benchmark gaps for the Czech plant
Cost bucketCost (EUR m a year)Benchmark gap or possible cut (%)
Materials608
Labor3010
Overhead1020

The prompt

A car-parts maker in the Czech Republic has total costs of EUR 100 million a year: materials EUR 60 million, labor EUR 30 million, and overhead EUR 10 million. The owner wants EUR 10 million of yearly savings within two years without hurting quality. The table below shows each cost bucket and what benchmarks suggest. Where would you find it?

Interviewer-led: the interviewer shows the cost table and asks whether overhead alone can reach the target, then for the savings by bucket, then for the one-time cost.

Practice with a partner

1. Send the interviewer link to a friend. They read the case aloud and hold the answers.

2. You open the candidate view: you see only the prompt, a timer and a notes box.

3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.

Your turn first

The exhibit

Cost buckets and benchmark gaps for the Czech plant
Cost buckets and benchmark gaps for the Czech plant
Cost bucketCost (EUR m a year)Benchmark gap or possible cut (%)
Materials608
Labor3010
Overhead1020
My notes on this case

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