Cost Management

Using Activity based costing (ABC) and other techniques, we perform a deep analysis of breaking expenses cost center-wise to facilitate the process of planning and controlling the budget of a business. This is linked with our Monthly Monitoring System through which the actual is compared with the Budget.

Waste:

  • How much is the client losing for not being able to use the entire capacity?
  • How much is it losing due to rejections during the production process?
  • How much of such rejections are beyond acceptable norms?
  • Are there other areas of waste thrown up by the rigorous introspection caused by this exercise?
  • What is the cost failing to ship on time in full to his second largest customer this month?

Know real cost of the product for Pricing, Profitability or strategic purposes

Our Deliverables

  • Product costs
  • Product cost model with cost drivers
  • Cost management system
  • Good estimate of Product/ Services cost, Deep look at expenses and its usefulness to take corrective actions
  • Identification of Value Destroying items. Example:
    • Items with Negative Gross Margins
    • Expenses with no clear benefits on Profitability/ Cash flow