STRATEGIC COST CHALLENGE

Agreeing on the need to Manage Costs

• Determining Team Goals
• Selecting a Primary Cost

Identifying Critical Costs in the Supply Chain

• Process Mapping
• Breaking down the Primary Cost
• Selecting Critical Costs

Measuring Secondary and Tertiary Costs

• Using Formula based costing to deliver Cost Drivers

Defining the Key Cost Drivers & Developing Strategic Options

• Identifying Key Cost Drivers
• Developing Strategic Options

Reducing, Changing or Eliminating activities that cause Costs

• Creating Strategy Statements
• Risk/Benefit analysis
• Quantifying potential savings

Implementing a Cost Management Strategy

• Developing Implementation Plans
• Managing Risk
• Selling your Strategy

Verifying the Strategy with Cost Monitors

• Monitoring Performance
• Documenting Results
• Presenting your Results

Eternally Improving the Process

• Selecting the next project: Other strategic options, other cost drivers, other critical costs and other topics