CPM™ Framework
cost assessment & management
- Assess current products/services and associated activities, drivers and costs
- Perform an in-depth analysis of the operating activities under assessment
- Assign resource costs to activities using activity based costing techniques
- Identify outputs (products/services), and assign activity costs
- Understand the relationship of underlying costs to changes in volume and production
- Compare relative cost position to competitive environment
- Understand the relationship of underlying costs to changes in volume and production
- Compare relative cost position to competitive environment
- Uncover opportunities for cost improvement, reallocation or reduction
- Target costing
- Activity Based Management
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processes & policies
- Apply the costing policy consistently throughout the organization, including globally
- Gain control over various costing processes
- Ensure effective cross-functional interaction (necessary for policy implementation) is in place
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organization alignment
- Develop a strong, well respected costing organization
- Ensure role clarity and stakeholder commitment across different functions
- Change management
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tools & reporting
- Costing tools (containing activities, drivers, services etc.)
- Reporting dashboards showing unit cost by product/service; the effect on unit cost of various costing programs etc.