Cost-based Pricing is fast becoming a relic of the past and being substituted by the concept of Target Costing. Target Costing is referred to as an organized process to determine the cost at which a proposed product must be developed so as to generate profits at the product’s anticipated selling price in future. In highly […]
Tag Archives | cost reduction
To Survive COVID-19, We Need to Manage the 3 Cs – Costs, Capital, and Cash Flow
The entire world is facing the same crisis right now. As of the morning of April 2nd, there are close to 1MM Coronavirus cases worldwide, of which 75% are active cases. For almost all countries, the case growth is still growing exponentially on a day-to-day basis. With entire nations under lock-down, many industries and businesses […]
Conducting PMI? Here Are the Critical 8 Decision Levers to Evaluate
Mergers and Acquisitions (M&A) are unique and complex endeavors. These initiatives demand tailored solutions keeping in view the varying environments, ways of doing business, culture of the two combining organizations, and internal and external forces influencing the deal. These transactions necessitate making 8 important decisions based on thorough deliberation and analysis of all relevant factors […]
Effectively Controlling Your Business’s Costs? 5 Frameworks on Cost Management
Managing and reducing costs is a critical for any organization’s survival. It’s a prerequisite for staying competitive. Below are 5 frameworks used by management consulting firms specializing in Cost Management. They cover initiatives that range from department-specific to enterprise-wide. Cost Reduction Opportunities (across Value Chain) https://flevy.com/browse/business-document/cost-reduction-204 This document identifies 45 cost reduction initiatives across the […]
13 Modules to Maximize Performance Improvement and Cost Reduction
Lance Latham is an executive with expertise in Operations Management and Process Improvement. Regardless of company size or business arena, Lance consistently demonstrated that the same management methods that raise output quality, increase productivity and efficiency, and drive down operational costs in one environment are equally effective when applied in another. He’s a developed a […]
With Proper Value Analysis, Cost Reduction Is Guaranteed
What is Value Analysis? It is an orderly and creative method to increase the value of an item. This “item” can be a product, a system, a process, a procedure, a plan, a machine, equipment, tool , a service or a method of working. Value Analysis, also called Functional Analysis, was created by L.D. Miles […]
Eliminate Non-Value Added Activities in Your Organization
Recession or boom, companies need to sharpen their competitive edge by applying Lean Management principles to cost reduction—that is, the elimination of non-value-added activities or waste in the value stream processes. Be Lean In the Lean Management philosophy, all activities in an organization are grouped into two categories: value-added (VA) activities, and non-value-added (NVA) activities. […]
