Cost Analysis

Learning Goals

The following topics will be discussed:

  • Functional analysis basics.
  • Fundamentals of product cost structure.
  • Should cost & cost breakdown analysis.
  • TCO principles.

The objective of this module is to provide participants with the basic knowledge to understand how suppliers calculate their costs and their selling price.

Target Group

  • Buyers at any level who wish to learn how to use cost breakdown and TCO decision-making tool to better negotiate price reductions with suppliers.

Method & Tools

  • A business case study is used.
  • Enables participants to analyse each major category of cost.
  • Participants constantly challenge the current paradigms and take innovative decisions.
  • The participants work in small teams of three.
  • They share experiences.
  • They learn by making smart decisions and some errors.