Advanced Costs Reduction Tools

Language: Chinese

*please note that booking the event in your calendar does NOT mean that you are registered. You need to register first if you want to attend an event.


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) optimization 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.


Day 1

Functional definition of requirement: a tool to  better  understand  the  real  needs  and avoid over specification.

  • Concept of functions and functional specification.
  • Understand when to use it.
  • Step by step approach to build up a functional specification.
  • Application to various situations: products, systems and services.
  • Using  the  functional  approach  to  support  the purchasing strategy.

Value analysis: a redesign to cost approach

  • From cost reduction to value management.
  • Value analysis work-plan and conditions for successful implementation.
  • Understand how to assess the value of the existing solution (importance of functions and benefit versus cost).
  • Make a diagnosis of the design of a product using value analysis tools.
  • Seek innovative solutions through brainstorming and other techniques.
  • How purchasing can initiate and support value analysis projects.

Day 2

Cost analysis & tool set

  • Understand cost structures and the key items in a cost breakdown.
  • How  to  challenge  suppliers’  cost  breakdowns: machine cost, labor cost, material cost, overheads, and margin.
  • What are the most frequent “mistakes” found in suppliers quotations?
  • Challenge supplier operations.

Day 3

TCO ( total cost of ownership )

  • What is TCO  in real life.
  • TCO example.
  • TCO cost drivers and application to products or services.


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.

Methods and 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...).


Please fill the form and send your demand at: sh-training(@)


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