Presenting our new, product cost management PowerPoint presentation slides. We have conceptualized these slides around tools, processes, methods, and culture used by firms who develop and manufacture products to ensure that a product meets its profit target. Write on agenda, key levers to cost management, levers to achieve successful cost optimization, levels of strategic cost optimization, details levels within strategic cost optimization framework, prioritize IT cost optimization, three-step approach to its cost optimization, it cost optimization initiative benefits. Moreover, you can elaborate on various other cost optimizations plans in the area of improving data management, supply chain optimization, process automation, customer self-service, improving business efficiency through analytics, digitalization of business process, improving inventory management, continuous improvement culture. Furthermore, cost optimization planning and stages in cost reduction are described here through cost cutting, cost management, cost design, and cost positioning. Additional slides included here can be used to describe your team, targets, timelines and briefing on the company. Cut down the journalese with our Product Cost Management Powerpoint Presentation Slides. Ensure the issue becomes easy to figure out.

1. Product
Cost
Management
Your Company Name

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Agenda
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Agenda
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Agenda
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Agenda
Agenda
2
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3. Key Levers to Cost Management
Working Capital Management
• To ensure sustainability, reduce reliance &
exposure to short-term funding needs
• It is also subject to exposure and risks from areas
including receivables, payables and inventory
management
Procurement
• Due to reducing cost in china, many procurement
teams are facing growing pressure
• This will lead to more strategic sourcing,
consolidation of resources and improved contract
& inventory management
Operational Ef ficiency
• Companies often reduce focus on operational
& process efficiency
• Top performing companies understand the fact
that financial strength is built from driving out
operational inefficiencies
Supply Chain
• Inefficiencies in channel management and
distribution networks needs to be identified &
understood to optimize efficiency gains along
the supply chain
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4. Levers to
Achieve
Successful Cost
Optimization
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• What can be done better?
• How can the benefits and improvement to the financial
performance be permanently embedded?
Maintain & Grow
Discover
• How to best establish the cost optimization program?
• What are the goals / scope of the program
Insight
• What is the scale of the cost optimization
opportunities?
Design
• What opportunities are available and which one
should be developed?
Implement
• Which opportunities should be implemented and in
what order?
4

5. Levels of Strategic Cost Optimization
CostSaving
High
Low
Nature of IT Cost OptimizationTactical Strategic
Do More With
Less
Tighter Alignment
with Business
Transform To
Higher Levels
Transform
Agenda: Evaluate technology,
broaden capabilities., create new
sources of revenue.
Invest more to optimize more
Rationalize
Agenda: Rationalize IT portfolio,
reduce functional redundancies.
Business relevance, flexibility, agility
Optimize
Agenda: Improve processes, “go lean,”
evaluate target operations models (shared
services), exercise sourcing options.
Remove waste, increase efficiency
Reduce
Agenda: Cut IT costs, prioritize
demand, span of control
enhancements
Reduce costs and prioritize spend
5
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6. Detailed Levels Within Strategic Cost Optimization Framework
Level 01
Level 02
Level 03
Level 04
Reduce: Cut Costs and Prioritize Spend
Companies tend to prioritize cost optimization initiatives by simply considering short-term cash savings
Optimize: Remove Waste and Increase Efficiency
The focus should be on eliminating excess waste while increasing the efficiency of current systems
Rationalize: Seek Business Relevance, Flexibility and Agility
It is imperative to focus on business goals and ensure that IT initiatives are
aligned with business objectives and priorities. IT performance metrics should be
closely tied to business metrics so that their alignment can be measured
appropriately
Transform: Invest More to Optimize More
As economic conditions improve, companies can focus their cost optimization
efforts on implementing long-term business and IT process improvements,
enabling business growth and innovation, and repositioning the business to
sustain a competitive advantage
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7. Prioritizing IT Cost Optimization
Dimension
Score
1 2 3
Strategic Value Low Medium High
IT Control Low Medium High
Potential Cost & Benefit Low Medium High
Customer Impact Negative Neutral Positive
Time to Benefit Realization < 18 Months 6-18 Months < 6 Months
Degree of Business Risk
Reengineering of current processes
& organizational structures. Staff
redundancies.
Limited changes in roles &
organizational structures
Minimal organizational change
& staff impact
Degree of Technical Risk
Impact on operating system,
database & middleware.
Moderate impact on few
technical components.
Minor impact on technical
components
Likelihood of Reprioritization &
Cancellation
High Medium Low
Investment Requirement High Medium Low
Total Score
9 18 22 17
Reject Evaluate Accept
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8. IT Cost Optimization: Three-Step Approach
Application Portfolio Rationalization
Infrastructure Rationalization
Organizational & Operating Model
Global Sourcing
Operations & Process Transformation
IT Investment Optimization
• Flat or declining IT budgets, coupled with an
increased demand for IT services
• Removal of expenses from current spend or run rate
in order to invest in future business opportunities
Identify Investment Opportunity
Prioritize Investment Portfolio
Define IT investment Optimization Goals
Develop Ongoing Governance
IT & Business Alignment
IT Cost Assessment
• Business challenges identified through merger,
acquisition or divestiture of business operation
• Increased utilization of IT resources & assets
Alternate Sourcing
Business Alignment
Vendor Renegotiation
Consolidation/ Rationalization
Standardization
People Alignment
Opportunity Identification
Software Hosting Network End User
Computing
IT Overhead
Management
Opportunity Identification
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9. IT Cost optimization initiative Benefits
Operations & Process
Transformation
• Improve visibility of end-to-end value
chain
• Increase demand forecast accuracy
• Drive significant increase in bottom line.
Organization &
Operating Model
• Savings due to process
standardization and reduced re-work
• Improved Product Quality and
Service
Application Portfolio
Rationalization
• Improved Cost Management
• Increased Efficiency
• Business Transformation
Infrastructure
Rationalization
• Reduce total cost of ownership
• Improve economies of scale by
standardization of assets
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10. CostOptimizationTechniques Improving Data Management
Enable people to share data in an easy & efficient way & use
that data to create business value through better & faster
decisions
Supply Chain Optimization
CIOs need to work collaboratively to look beyond cost reduction to enable
increased sales. Focus should be on using a mixture of conventional &
unconventional techniques to optimize IT & business costs
Process Automation
Business leaders need to go beyond the current use of automation to
robotics, and leverage the Internet of Things and smart machines to build
intelligent business processes
Customer Self-Service
Establish a strategy to handle self-service technologies, which must be
continuously updated and based on the customer’s perspective and
experience
10
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11. CostOptimizationTechniques Improving Business Efficiency
Through Analytics
Advanced analytics helps in reducing customer churn and make equipment
safer. Utilizing analytics also helps in the customer retention or improving
marketing responses which in turn can have a big impact on the business
Digitalization Of Business Processes
Develop an integrated approach that brings together required competencies &
expertise, along with buy-in from the executive leadership team
Improving Inventory Management
As inventory is a working capital asset, reducing inventory will contribute
directly to the bottom line
Continuous Improvement Culture
CIOs need to work collaboratively with business leaders to focus on lean
improvement efforts
11
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12. Cost Optimization Planning
Already
Done
Plan to
Do
Save
IT Procurement
• Hiring internally at lower rates than contact staff
• Deferring desktop Replacements
• Text Here
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18
21
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Cost Savings within IT
• Open-Source desktop Software
• Consolidation of data centers within a single agency
• Text Here
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x
x
x
x
x
x
x
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x
x
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Joint Business &
IT Savings
• Asset utilization Analysis
• Teleworking
• Text Here
x
x
x
x
x
x
x
x
x
x
x
x
Process Improvement,
Business Restructuring &
Innovation
• Sharing citizen call centers across agencies
• Sharing IT help desk across agencies
• Text Here
x
x
x
x
x
x
x
x
x
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13. Stages in Cost Reduction
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Cost Cutting
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Cost Management
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Cost Design
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Cost Positioning
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14. 1. Cost Cutting
Cost Cutting
involves cuts in
spending based on
arbitrary criteria.
Costs are divided
into committed &
discretionary
categories.
Cuts target discretionary
before committed; large
before small; expedient
before sensitive.
Performance
measured against
historical standards
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15. 2. Cost Management
Cost Management
involves a systematic
approach to cost
reduction that involves
an understanding of
relevant cost drivers
Costs are organized by
resources, activities, and
cost objects
Reductions achieved by
eliminating unused
capacity, nonvalue-added
activities, & reducing
activity cycle times.
Performance measured against
long-term target standards
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16. 3. Cost Design
Costs are organized
by process & sub
process.
Reductions achieved by eliminating
redundancy & conforming to
operational strategy.
Performance measured against
best-in-class standards of
performance.
Cost Design involves an evaluation & redesign of the internal value chain . It seeks to improve the relationship among resources
required and work performed to satisfy customer requirements
16

17. 4. Cost Positioning
Reductions achieved by consolidation of links, sharing information,
better coordination, & exploiting synergies among supply chain
members
Costs are organized by links in the value chain
Performance measured against strategic objectives such as market share &
price targets
Cost Design involves an evaluation & redesign of the internal value chain . It seeks to improve the relationship among resources
required and work performed to satisfy customer requirements
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18. Comparison of Stages
Stages Cost Cutting Cost Management Cost Design Cost Positioning
Basis Arbitrary spending cuts Understanding cost drivers Redesign internal value chain Redesign external value chain
Objective Achieve cost reduction targets Satisfy customer requirements
Enhance company
competitiveness
Enhance s. chain
competitiveness
Time horizon Short term Medium Term Long term Long Term
Perspective Internal Internal Internal External
Cost Measurement
Classified into committed &
discretionary
Organized by resources activities,
& cost objects
Organized by links in the internal
value chain
Organized by links in the external
value chain
Reduction
Methodology
Reduce discretionary large &
expedient costs
Eliminate unused capacity, NVA
activities & reduce cycle times
Eliminate redundancy & conform
to operational strategy
Consolidate links, share
information, coordination,&
synergies
Performance
Standards
Historical standards Long-term standards Best –in- class standards Strategic objectives
Common tool Standard costing Kaizen Costing Activity-Based Planning Strategic Cost Management
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It’s Time For
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10:15 am To 10:30 am.
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20. 20
Additional
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21. About us
Target Audiences
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Preferred by Many Values Client
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22. Meet Our Team
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23. 01
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Puzzle
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25. Our Target
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29. 29
Charts &
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30. Bar Graph
0%
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100%
2017 2018 2019
Inpercentage
In years
Product 01
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Area ChartThis graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
0
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FY 12FY 11FY 10FY 09FY 08FY 07FY 06FY 05FY 04FY 03FY 02FY 01
GrowthInPercentage
100%
Product 01
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32. Scatter Chart
0
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2 4 8 11 18 25 35 45 48
InPercentage
Dollars (in Billions)
Product 01
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Radar ChartThis graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
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02-05-2017
07-05-2017
12-05-2017
16-05-201722-05-2017
12-05-2017
Product 01
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34. Pie Chart
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90%
Two
40%
One
60%
Three
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