Cost Management, Cost Identification and Cost Control Training in Michigan

Costing

We cannot control prices, so we must control costs. In some cases, this is a near impossible task - how do you control what may be a virtual unknown? Or, how do you make confident business decisions when you have doubts about the financial data you have to rely upon?

First, you must know and understand the cost structure of the company. The cost data must be modeled into a format that provides accurate, reliable and predictable cost information. Then, and only then, can you begin to manage and control your costs with confidence.

Cost Identification

Clearly, the fundamental first step to controlling the costs of any company is to identify and understand them.

Where and how are they generated?
What is the mix of fixed and variable cost content?
Are they erroneously buried in an overhead?
What is the proper level of detail to establish and evaluate the cost rates?
What is the proper focus to apply to the cost - process, product, customer, or ???

Once the costs have been identified and presented in an accurate, usable and predictable format - there is now the opportunity to manage and control them.

Do you have confidence in
your costing system?

Cost Management and Control

With accurate and predictable cost data available, it is now time to get to work and effect a positive impact to the bottom line.

Clear, logical and accurate estimates in support of the Quoting process
Accurate cost impact data to support make/buy decisions
Accurate cost data to reflect the impact of utilization changes
Accurate cost data to direct and reflect the impact of process changes through Lean initiatives
Accurate cost impact data to support the difficult decisions of firing suppliers and customers
A structured cost system that can be focused to evaluate virtually any business decision

Do you have the proper tools
in place to improve?