Strategic Cost Management

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This book shows how to do the following:

Understand cost numbers - what they say, what they don’t say and what they should say. Collect relevant cost information on a company-wide basis using a TCO framework. Efficiently analyze the TCO impact of business decisions using differential analysis. Evaluate the role of options in situations where risk is present. Present the analysis in a business case format that is meaningful to all levels of management.

These tools enable correct decision-making in the three principal areas of cost management:

Pricing - paying the right price for purchased goods and services. New Product Design - creating product that can be produced and supplied competitively. Process Change/Optimization - reducing the actual cost of current products, whether made or purchased.