Strategic Cost and Price Analysis, Value Analysis, and total Cost of Ownership Concepts
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Strategic Cost and Price Analysis, Value Analysis, and total Cost of Ownership Concepts Course
Introduction:
In today's competitive landscape, organizations strive to minimize operating costs and enhance quality and productivity. To achieve these objectives, the development and implementation of well-designed strategies for acquiring goods, parts, equipment, and services have become crucial. This program delves into essential concepts such as Strategic Cost/Price Analysis, Value Analysis, and Total Cost of Ownership. By shifting from a tactical approach to a strategic focus, supply management organizations can effectively implement the necessary processes and methods to attain world-class performance.
Course Objectives:
- Explore the Elements of Cost In Supplier’s Price
- Differences in International Labor Rates
- Understand how to Develop a “Purchasing Coding System”
- Learn How Volumes Should Impact Price
- Discover Supplier’s Different Pricing Models
- Explore Issues of Supplier/Contractor Overhead Expenses
- Experience the Development of A Purchase Price Index
- Obtaining Suppliers Price Breakdowns
- Learn how to Get More Time to Work on Strategic Issues
- Develop Skills in Negotiation Planning and Strategies
- Understand Methods of Price and Cost Analysis
- Apply Concepts of Value Analysis
- Development of "Should Cost"
- Types of TCO Systems
- Approach to Implementing TCO Analysis
Who Should Attend?
Professionals involved in:
- Purchasing, Procurement, Contracts, Contract Administration, Projects
- Engineering, Facilities, Finance, and Maintenance personnel
- All others who are involved in the planning, evaluation, preparation, and management of purchasing and contracts that cover the acquisition of materials, parts, equipment, and services, and who are in organizations whose leadership want high levels of excellence in those involved in these activities.
Course Outlines:
Setting the Strategic Direction
- Defining the Supply Management Mission and Vision
- Stages to World Class Supply Management
- Change and Becoming More Strategic
- Supply Management Skill Sets
- Developing the Spend Analysis
- Creating Time to be Strategic
- The ABC (Pareto) Analysis
- Material/Services Purchasing Code Development
How Do You know that you obtained a Good Price
- Supplier Pricing Models
- Defining Cost and Price Analysis
- Difference Between Cost and Price Analysis
- Selection Tool
- Methods of Price Analysis
- Historical Analysis
- Working with Producer Price Indexes
- Developing the Organization’s Purchase Price Index
- Estimating Cost Relationships
Getting a Better Price by Analyzing Cost
- Methods of Cost Analysis
- Major Elements of Cost
- What and How Important Are Supplier Overheads
- Sources of Cost Information
- Developing “Should Costs”
- Requesting Supplier Cost Info
- Issues In Analyzing Supplier Cost Breakdown
Using Price Volume, International Labor, and Value Analysis
- Global Industrial Labor Rates
- Working With Currency Exchange Rates
- Cost Volume Profit Analysis
- Fixed and Variable Costs Defined
- Use of Cost Volume Relationships
- Calculating Fixed and Variable Cost Algebraically
- Defining Value Analysis?
- The Test for Value List
- The Supplier Value Check List
Total Cost of Ownership (TCO) Concepts
- Change in Supply Management
- Definitions of TCO
- Objectives of TCO
- Barriers to TCO
- Process Flow Diagrams
- Approaches to TCO
- Dollar Model
- Value Model
- Total Cost Modeling of the Supply Chain
- Implementing TCO