Macro-level Reduced Unit Costs
Macro-level Reduced Unit Costs & Improved Efficiencies: The coloured bars are the tons treated, and the black line shows the unit costs within the intervention scope.
The Client Leadership Team selected a reduction of 1% per month. The mechanism delivered a steady, controlled, sustainable, decrease in unit cost once the intervention had started.
Note that the unit cost does not vary with the tonnage – i.e. costs are being managed as 100% variable. The only thing that changes was behaviour. All other inputs remained the same. Operational efficiencies and throughputs were not adversely affected – in fact, average throughput improved, and variability decreased.