Effective cost management

Classification of cost management

• Starting points for cost management.
• Determination of requirements and structuring.
• Top performers versus low performers.
• Target definition, planning, implementation.

Creation of the database

• Data request - now and in the future.
• Creating data transparency.
• Consolidation of data into decision-relevant information.

Cost management instruments

• Life-Cycle-Costing.
• Target Costing.
• Litigation costs.
• Benchmarking.

Strategic cost management

• Cost estimation of strategy decisions.
• Estimation and analysis of influencing factors.
• Customer-centric approach to cost management.
• External, internal outsourcing versus insourcing.
• Supply Chain Management.
• Bundling of business processes.
• Complexity and variant level.

Operational cost management

• Target/actual comparisons of costs in the financial year.
• Cost and key figure analysis.
• Monitoring and controlling of costs.
• Material, personnel and overhead costs.
• Working capital.
• Cash Cycle Time.
• Performance reviews.

Establishing cost management in the company

• Systematic approach.
• Culture of cost awareness in the company.
• Sustainable communication.
• Implementation of initial optimizations and "quick wins".
• Reporting and transparency.

Outlook for cost management

• Process cost management.
• Data mining and artificial intelligence in cost management.