TOOLS FOR CREATING
AND MANAGING VALUE
PART A: THE VALUE CHAIN
PART B: STRATEGIC PRODUCT COSTING
PRODUCT COSTING
Sales and production figures
Sales and production figures
Overheads
ACTIVITY-BASED COSTING
VALUE ENGINEERING
COST DRIVERS
STEPS IN ACTIVITY-BASED COSTING
- Activity analysis
- Create cost pools
- Establish the cost drivers
- Identify the number of cost driver transactions
- Determine the ABC allocation rate for each cost pool
- Allocate cost pools to each product line
- Calculate the indirect cost per unit
BENEFITS OF THE ACTIVITY-BASED COSTING SYSTEM
TIME-DRIVEN ACTIVITY-BASED COSTING
ADJUSTING TIME-DRIVEN ACTIVITY-BASED COSTING FOR
MORE COMPLEX ACTIVITIES
PART C: STRATEGIC REVENUE
MANAGEMENT
MAJOR INFLUENCES ON PRICING DECISIONS
Hard
functions
Soft
functions
SURPLUS VALUE
PRICING STRATEGIES
RAPID SKIMMING STRATEGY
RAPID PENETRATION STRATEGY
SLOW SKIMMING STRATEGY
SLOW PENETRATION STRATEGY
LEGAL IMPLICATIONS OF PRICE SETTING
PART D: STRATEGIC COST MANAGEMENT
INCREASING EFFICIENCY WITHOUT REDUCING COSTS: THE SPARE CAPACITY DILEMMA
LIFE CYCLE, TARGET AND KAIZEN COSTING
Product life cycle
Target costing
Kaizen costing
END OF ECONOMIC LIFE: REVERSE FLOWS IN THE
VALUE CHAIN
ACTIVITY-BASED MANAGEMENT AND CONTINUOUS
IMPROVEMENT
Activity-based management
Business process management
Activity value analysis
Continuous improvement
SOCIAL AND ENVIRONMENTAL VALUE CHAIN ANALYSIS
PART E: STRATEGIC PROFIT
MANAGEMENT—UPSTREAM ACTIVITIES
SUPPLIER MANAGEMENT
GLOBAL SUPPLIERS
SUPPLIER CODES OF CONDUCT
MINIMISING INVENTORY LEVELS
SUPPLY CHAIN DISRUPTIONS
VENDOR OR SUPPLIER SELECTION
TOTAL QUALITY MANAGEMENT
Costs of
controlling quality
Prevention
costs
Appraisal
costs
Costs of failing to
control quality
Internal
failure
External
failure
OUTSOURCING AND OFFSHORING
Offshoring
Outsourcing
PART F: STRATEGIC PROFIT MANAGEMENT—DOWNSTREAM ACTIVITIES
CUSTOMER PROFITABILITY ANALYSIS
Supplier cost performance ratio (Total supplier-related costs /Invoice cost of raw materials)
Supplier failure
Logistics failure
Natural disasters
Geopolitical events