Basic Interventions in Cost Management such as;
Computation of Margins, Contribution & Variance analysis
Developing Cost reporting system,
Establishing linkages to plant performance indicators
Identification of vulnerable leakage points and evolve a system for Controlling wastages and scraps
Cost improvement programs and Profit enhancement through Process study, establishing an optimum base for Cost of conversion and cost benchmarking
Design and Set-up
Advise on developing a full fledged Cost Management system with an objective of achieving Maximum Value Creation at Minimum Cost. Such a system shall encompass the following
- Understand the processes and map them by their sequence and costs.
- Select processes from the customer’s point of view and analyse their costs, thereby differentiating the value-added activities from the non-value adding ones.
- Identify the cost drivers that create or influence cost.
- Identify and monitor significant technology costs and Trace many technology costs directly to products.
- Translate company goals into activity goals, Analyze the performance of activities across business functions, Analyze performance problems and Promote standards of excellence.
Thus help the Company have multi dimensional cost for a given product or products through activities, processes, technology etc.,
Value chain analysis ( Industry and Internal ) is a powerful tool that works well as a strategy for managing costs, and therefore is one of critical part of a total cost management. HVCS will help the customers to do
- Identification of the Value Chain Activities within the Company,
- Ascertaining the activities that are strategic
- Tracing the costs to the Value Chain Activities
- Using the information to arrive at a strategy to win over other Companies in the industry.
- Helping the Customers to understand their relative strength & competitive advantage within the Industry by breaking up the value chain in to segments
Decision support on make or buy or backward or forward integration or breaking the value chain based on the above mentioned analysis thereby help the customers lowest cost in the industry value chain.
Decision support in case of pricing of new products or new variants in a very competitive market through Target Costing techniques which gives the customers the ability to design/develop the product to a cost goal & mapping of relevant costs.