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Develop cost management program strategies for purchases(1B2) ((Issues to…
Develop cost management
program strategies for purchases(1B2)
Cost of quality
Cost of inventory
Contribution to profit
Intangible costs
Margins
Total cost of owner ship
Product cost roll-up
Other forms of
cost management
Improved form,fit & function
Easier use
Administrative savings
Improved quality
Standard cost setting
Cost modeling
Value analysis/
value engineering processes
Process
Techniques
Organizational requirments
Issues to be
considered when
establishing a cost
management program
Status of the standardization program
Coordination with other departments
Time requirements
Effect on quality & service
Effect on operations
Calculating cost avoidance/reduction
Market testing
Top management support
Design flexiblity
Product longevity
Consumption management
Cost savings
Cost avoidance/containment
Cost reduction