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Training Services
AIM&DRIVE®: Eight Steps To Managing Costs Through The Supply Chain
The fight for market share is no longer between individual firms, but rather between rival supply chains made up of strategically aligned world-class companies. Leading edge technology, world-class quality, on-time delivery and excellent service are standard expectations. Providing all of these at a lower cost than that of your competitors will be the critical factor in ensuring long-term profitability and survival.
To achieve this objective, supply chain organizations must move beyond leveraging volume and negotiating price to collaboratively developing and implementing breakthrough strategies. However, very few companies have written cost management plans by which to do so.
In this workshop, participants will learn how to develop a written cost management strategy using the AIM&DRIVE® process. They can expect short and long term benefits from this course.
Short-Term
The workshop provides participants with a proven process to collaborate with internal and external stakeholders to develop supply chain cost management strategies. It identifies cost reduction opportunities beyond the obvious purchase price.
When participants apply the process to a real project during an AIM&DRIVE® Cost Challenge, they will see immediate quantitative and qualitative benefits. The results, when presented to management, enable teams to gain support and funding for future projects.
Long-Term
The framework developed through this process will serve as a checklist for ongoing cost management of products, services and equipment. If properly documented and harnessed, the information developed in a cost management strategy can be leveraged across the whole company. The ultimate goal of progressive firms in the 21st Century is to move "from leveraging volume to leveraging ideas". The relationship between a customer and its key suppliers will be greatly enhanced by working collaboratively on a cost management strategy.
| Learning Objectives |
- To understand and use Anklesaria's AIM&DRIVE® process to develop a written cost management strategy
- To select Primary Costs
- To differentiate between cost elements and cost drivers
- To conduct a comprehensive risk analysis on strategic options
- To develop realistic action plans
- To work with cross-functional teams across a supply chain
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| Target Audience |
This workshop is intended for individuals from Procurement, Engineering, R&D, Manufacturing, Quality, Supply Management, Logistics, Marketing and Finance.
Since the application of the process is dependent on the participation of key suppliers, it is strongly recommended that a cross-functional team from each of these suppliers be invited to attend.
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| Pre-class Requirement |
None (an open mind is all that is needed)
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| Class Time |
1 or 2 days (8 to 16 hours)
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| Class Size |
20-40 participants
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| Certification |
This course is worth 8 or 16 Continuing Education Hours toward ISM's C.P.M. Recertification
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| Program Outline |
From Leveraging Volume to Leveraging Ideas
Agreeing On The Need To Manage Costs
Determining team goals
Selecting a Primary Cost
Identifying Critical Costs In The Supply Chain
Process Mapping
Breaking down a Primary Cost
Selecting Critical Costs
Case Study
Measuring Secondary And Tertiary Costs
Traditional Versus Modern Methods of Measuring Cost
Using Formula Based CostingTM to develop Cost Drivers
Case Study (continued)
Defining The Key Cost Drivers & Developing Strategic Options
The Weighted Cost Driver Matrix
Developing Strategic Options
Case Study (continued)
Reducing, Changing Or Eliminating Activities That Cause Costs
Identifying Constraints
Creating Strategy Statements
Risk/Benefit analysis
Quantifying potential savings
Case Study (continued)
Implementing A Cost Management Strategy
Determining Responsibilities And Time Lines
Developing Contingency Plans
Managing Risk
Selling Your Strategy
Case Study (continued)
Verifying The Strategy With Cost Monitors
Monitoring Performance
Documenting Results
Presenting Your Results
Eternally Improving The Process
Selecting the next project
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