Advanced Cost Reduction Tools – Value Thinking

Learning Goals

Following this module, participants will be able to:

  • Lead functional analysis cessions for product and services by using standard methodology.
  • Understand principles for Value analysis and its application to Dfx (design for X) optimisation workshops.
  • Differentiate fundamental product cost elements linked to the financial income statement.
  • Understand cost element drivers and impact on product cost.
  • Create product or service should cost supporting suppliers cost breakdown analysis.
  • Apply methodology to develop structured TCO model with key parameters and cost drivers.
  • Develop a supplier engagement plan or cost reduction supported by in depth analysis of product cost elements.

Target Group

  • Technical buyers with technical background or culture involved in leading cost reduction activities.
  • Other buyers willing to understand the cost drivers of their company as well as with their suppliers in order to identify and take advantage of saving opportunities.

Method & Tools

  • Each trainee will be given a handbook containing reusable templates used for the different tools.
  • A master document will present each technique as seen during the training session.
  • All tools and techniques are presented in a simplified and reusable way and illustrated by real application examples taken from various industries, including the most demanding ones (automotive, food, household...).