Why should you care
Global organizations are reshaping themselves to serve a dynamic and demanding market - and that means reinventing themselves to operate in an increasingly flexible and adaptable way, responding dynamically to ambiguous and complex questions.
More and more organizations are implementing modern production strategies and looking for ways to achieve the best performance at the lowest cost.
Thus, cost management is a key success factor and has a direct impact on productivity growth, on the assertiveness of decision making on prices and investments and on the continuous improvement of the production process.
These changes require that every company effectively control its costs, reduce losses and waste and have an accurate knowledge of the costs actually embedded in each product or service.
78%
(%) of the companies have inaccurate or inadequate costing systems, which impacts the formation of prices and the competitiveness of their products.
How our methodology for diagnosing and implementing cost management systems can help you
Starting with the Diagnosis of the current cost management system of your business, we identified the priority points to be reviewed to improve the performance of the operational and strategic management, which allows:
- Identify the strengths and weaknesses of the current system;
- Define the most appropriate means and methods to be applied;
- List improvement actions to improve information accuracy;
- Identify how information can and should be used in the routine, in the search for improvements in products and services and in internal processes.
Once the diagnosis has been carried out, with the presentation of the Final Technical Report, we support the project to implement the cost management system, improving the accuracy, reliability and timeliness of the information, allowing us to have an effective control of the profitability of each product and / or its customer. business.
For each reality, we propose effective actions to improve the return on investment, eliminating waste, fighting idleness and internal inflation.
How it works
The focus of this solution is on defining specific goals for each product or service and for adjustments to the components of the financial cycle through the identification of internal and external benchmarks.
The adopted methodology provides distinct and adequate levels of information on the cost of each product or service, allowing to understand the contribution and profitability margin of each production line, each sales region, each customer.
Which allows you, among other results, to obtain:
- The structuring, classification and effective accounting of costs and expenses;
- The implementation of sectorial or activity control maps, demonstrating how the company's processes are organized;
- The definition of implementation of the costing principles appropriate to the business (total absorption, partial absorption, variable);
- The definition and implementation of costing methods appropriate to the business (standard cost, ABC and UEP centers, etc.);
- The determination of Costs of Products Sold, Costs of Goods Sold or Costs of Service Provided;
Thus we support you in control and operational planning, allowing more assertive decisions, with the lowest possible risk.
