Strategic Cost Management

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.