Is Your Cost Strategy Competitive Enough

CII’s TCM Cell offers… Free Preliminary Study The TCM Cell will conduct a free preliminary diagnostic study, to determine the benefits of a detailed study and submit a proposal. On acceptance, a detailed study and facilitation of implementation by CII will follow.

Is your Cost Strategy competitive enough?

Detailed TCM Study The TCM Cell will interact with the organisation’s team and will facilitate the implementation of various TCM tools such as: n Target Costing n Activity Based Costing (ABC) n Balanced Scorecard n Activity Based Management (ABM) These tools are an organisational enabler for: n n n n n

Production/Process Improvement Value analysis of all activities - company-wide Cost of quality analysis Raw material optimisation Inventory Management

n n n n n

Scrap/Waste Reduction Energy Cost Reduction Logistics Cost Management Warranty Cost Management Marketing/Distribution Costs

The detailed TCM study will help in identifying cost saving projects in the above areas.

In-house Training Program CII’s TCM Cell will conduct an extensive training program, which will enable employees to recognise the mechanics of the TCM process. This program will provide & equip them with the TCM tools and techniques to improve their processes and deliver services to customers more cost effectively.

Cost Improvement Programs This special program will serve to tap cost saving proposals from the company personnel themselves by dividing them into several panels. A one-day seminar will be organised during which these panels will discuss and present specific cost saving projects that will be examined by an internal review committee. Accepted proposals will be taken up for implementation.

For further details please contact: K.V. Mahidhar

Total Cost Management will put you ahead... Confederation of Indian Industry TOTAL COST MANAGEMENT CELL 35/1,Abhiramapuram 3rd Street, Alwarpet, Chennai – 600 018 Tel: 044-4660430 (D) / 0570 /1311 Fax: 044-4660312 Email: [email protected] Website: www.greenbusinesscentre.com/tcm.asp

Confederation of Indian Industry

Total Cost Management (TCM)

Tools employed by the TCM Cell n

Activity Based Costing

Measures the cost and performance of activities, products, customer and services.

n

Activity Based Management

Identifies opportunities for improvement and helps in eliminating non-value added activities.

Target Costing

A structured approach to determine and achieve the product cost with specified functionality &quality, and to generate the desired level of profitability.

Supply Chain Management

An integrated approach to address sourcing, operations management, inventory management, logistics cost management, customer service, demand flow and distribution.

n

Process Improvement

Identifies opportunities for cost reduction in process industries covering all costs of operation including Raw Material optimisation and Scrap/Waste reduction.

n

Energy Cost Reduction

Identifies opportunities for energy saving in all Thermal and Electrical energy consumption areas.

n

Customer/Distributor Wise Profitability Analysis

Measures the profitability on distribution channels and customers.

n

Balanced Scorecard

A vehicle to help companies translate and implement strategy

n

n

TCM ISSUES

The Need for TCM

gain competitive advantage it is essential that cost management addresses not just individual activities or cost centres but the entire value chain.

up go ng ts tti os cu r c st ou e co rts? Do spit effo de

final customer a value-based product at a lesser cost, and thereby

How well informed are our sourcing decisions?

becoming a mantra in many Indian companies. In order to offer the

Can w p e re d increrices anduce our ase c yet valu ustome e? r

our h a re m e r W hic b l e c u s t o ta s? profi segment

W pro h a t a du r e p r o a n d ct co o u r f i t t h e sts a b ir ilit y?

Increase in global competition has resulted in Cost Management

CII’s TCM Cell Services

has established the Total Cost Management (TCM) Cell to provide Cost

Utilisation Business Process Product Range Costs Pricing Life Cycles Competition Customers

Resource Driven Simple Narrow High Variable Costs Cost Plus Long – Medium Local/Domestic Undemanding

Now Market-led Complex Wide High fixed Overheads Market driven Short International Demanding

customer satisfaction and improve their profitability.

experts, brings in an integrated approach to improve the cost competitiveness of the Industry.

The TCM Cell’s activities focusses on various sectors including Manufacturing n Engineering

Services n IT

n Foundry

n Banking

n Automobiles & Auto Ancillaries

n Financial Services

n Ceramics

n Hospitals

holistic framework to control, reduce and eliminate costs,

n Rubber Processing

n Retail

throughout the value chain. This process of managing

n Tyre

the financial outcome of activities encompasses all

n Steel

Total

Earlier

organisations will be able to manage cost, increase

CII-TCM Cell, through a panel of internal & external

TCM – Strategy for the Future

Business Scenario – A Metamorphosis

management tools to the Indian industry, using which

CII - TCM Cell’s Uniqueness

Understanding this requirement, the Confederation of Indian Industry

Management Services to the Indian industry.

The prime objective of CII’s TCM Cell is to impart cost

Cost

Management

is

a

company-wide

systematic and structured approach, which provides a

operations, internal and external. For these reasons,

The Cell offers a gamut of cost management services with total solution and facilitates implementation.

n Glass n Pharmaceuticals

TCM is one of the most powerful tools that corporations

n Chemicals

can wield in their quest for competitive advantage.

n Food n Paper n Cement n Sugar n Textiles