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DESCRIPTION
There is a general belief among organizations that a large percentage of a product’s costs are locked in by design. It is assumed that little can be done once the design is set. This assumption has influenced Cost Management Programs across diverse products’ life cycles. As a result, the focus during the design phase is Cost Reduction and Cost Containment during manufacturing phase.
Yet, organizations that operated in highly competitive market and demanded aggressive Cost Management showed that costs can be aggressively managed throughout the Product Life Cycle. Various Cost Management Strategies or techniques may be used to increase the program’s overall effectiveness.
This framework provides a clear perspective of Integrated Cost Management and the 5 Cost Management Strategies that can serve as tools to effective Cost Management.
1. Target Costing
2. Product-specific Kaizen Costing
3. General Kaizen Costing
4. Functional Group Management
5. Product Offering
The 5 Cost Management Strategies must be integrated, with the outputs of some techniques acting as inputs to others to substantially reduce costs throughout the Product Life Cycle.
This deck also includes slide templates for you to use in your own business presentations
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Source: Best Practices in Cost Reduction, Cost Management, Kaizen PowerPoint Slides: Integrated Cost Management PowerPoint (PPTX) Presentation, LearnPPT
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ABOUT THE AUTHOR
Additional documents from author: 83
We are a team of management consultants trained by top tier global consulting firms (including McKinsey, BCG, Deloitte, EY, Capgemini) with a collective experience of several decades. We specialize in business frameworks based on real-life consulting engagements.
We have served 100s of clients clients that range from Fortune 500 companies to startups to $1B+ private companies.
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Cost Reduction Assessment Target Operating Model M&A (Mergers & Acquisitions) Pricing Strategy Business Case Development Financial Modeling Value Chain Analysis Strategic Sourcing
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