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Over Four 
Decades of 
Industry-led Collaborative 
Research 
Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. 
CAM-I - Consortium for Advanced Management - International 
The following slides show some of the significant work CAM-I has done in the areas of methods, applications and guidelines by working with their members, strategic partners, academia and subject matter experts.
Over Four 
Decades of 
Industry-led Collaborative 
Research 
Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. 
Resources 
Cost Objects 
(Products, Services 
or Customers) 
Performance 
Measures 
Activities 
Activity-Based Costing 
Cost Drivers 
(Causes of Cost) 
The CAM-I Cross© 
Copyright © CAM-I – All Rights Reserved 
CAM-I developed standard for the implementation of Activity Based Costing. The CAM-I Cross is widely used in public and private sector organizations to understand cost, its drivers and optimize the cost/performance trade-off.
Over Four 
Decades of 
Industry-led Collaborative 
Research 
Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. 
Operational planning and control 
Customers & business sustaining 
Products / Services 
Processes 
Activities 
Resources 
Suppliers 
Decision flow and subordination 
Cost assignment flow 
In each decision domain, data is needed for operational planning and Cost Measurement 
Financial planning and control 
Demand management 
Supply management 
Operational Data and Cost 
Measurement Data Flow 
Copyright © 2006-7 CAM-I – All Rights Reserved
Over Four 
Decades of 
Industry-led Collaborative 
Research 
Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. 
Target Costing Process Advantage 
Percentage 
Phase of Product Development 
10 
20 
30 
40 
50 
60 
70 
80 
90 
100 
0 
Brief Window of Opportunity 
85% of Cost Committed 
70 
85 
95 
Percent of Life-Cycle 
Cost Committed 
5% Cost Expended 
5 
30 
Percent of Program 
Cost Expended 
Concept 
Development 
Preliminary 
Design 
Detail 
Design 
Production 
Shifting the Focus 
Target Costing implementation framework tailored by CAM-I provide the basis to attain desired should cost. This model has been adopted by The Boeing Company, Rockwell Collins, Crysler Corporation, Whirlpool, Dresser-Rand, Caterpillar, Texas Instruments and others.
Over Four 
Decades of 
Industry-led 
Collaborative 
Research 
Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. 
Ad hoc Tracked Analytics Benchmark 
The CAM-I PMF is a holistic methodology that identifies key enablers influencing an organization`s 
business performance. The framework pinpoints gaps in enabler maturity and, within the constraints of 
the organization’s change capability, recommends specific techniques to improve performance. 
Level One: 
Rudimentary 
Level Two: 
Established 
Level Three: 
Effective 
Level Four: 
Adaptive 
non-systematic, 
non-periodic, and 
reactive 
stable and 
repetitive 
internally efficient 
and continuously 
improving 
externally efficient 
and dynamic 
Business/Operational Planning A&N 
Customer Relationship Management A&N 
Environmental Management A&N 
Financial Management A&N 
Human Capital Management A N 
Information Management A&N 
Innovation Management A N 
Knowledge Management A N 
Organizational Management A N 
Process Management A N 
Risk Management A N 
Strategic Management A N 
Supply Chain Management A&N 
Enablers / 
Maturity Levels 
1: Readiness 
Assessment 
2:Review and 
Rank 
Enablers 
3: Assess 
Maturity Levels 
4: Identify 
Maturity Gaps 
5: Deep Dive 
Maturity 
Assessment 
6. Use Readiness 
Assessment 
Results 
7: Choose 
Improvement 
Technique 
8: Measure 
Improvement 
Performance Management 
Framework (PMF)
Over Four 
Decades of 
Industry-led Collaborative 
Research 
Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. 
The CAM-I ABB Closed Loop 
Cost Assignment 
Cost Assignment 
Financial Results 
$ 
Target 
Results 
Financial Balance 
Adjust Consumption 
Adjust Demand 
$ 
Operational Balance 
Resource Capacity 
Adjust Capacity 
Shortage or Excess 
Activity Requirement 
Activities 
Consumption Rates 
Products & Services 
Demand Requirements 
# 
Resources 
Resource 
Requirement 
Consumption Rates 
# 
Adjust Resource Cost 
Strategic Plan 
Adjust Price 
Closed Loop Planning and Budgeting 
Close Loop Planning and Budgeting framework developed by CAM-I has been extensively implemented by member companies for resource and output optimization.
Over Four 
Decades of 
Industry-led Collaborative 
Research 
Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. 
Resource 
Decision Domains 
Process 
Product 
Customer/Market 
Strategic Management Processes 
Activity-Based Cost Management 
Capacity Management 
Target Costing 
Closed Loop Planning and Budgeting 
Extended Enterprise 
Process Management 
Integrated Performance Management 
Risk Management 
Asset Management 
CAM-I Strategic Management Process Model 
Copyright © CAM-I – All Rights Reserved

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CAM-I methods and applications - march 2014

  • 1. Over Four Decades of Industry-led Collaborative Research Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. CAM-I - Consortium for Advanced Management - International The following slides show some of the significant work CAM-I has done in the areas of methods, applications and guidelines by working with their members, strategic partners, academia and subject matter experts.
  • 2. Over Four Decades of Industry-led Collaborative Research Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. Resources Cost Objects (Products, Services or Customers) Performance Measures Activities Activity-Based Costing Cost Drivers (Causes of Cost) The CAM-I Cross© Copyright © CAM-I – All Rights Reserved CAM-I developed standard for the implementation of Activity Based Costing. The CAM-I Cross is widely used in public and private sector organizations to understand cost, its drivers and optimize the cost/performance trade-off.
  • 3. Over Four Decades of Industry-led Collaborative Research Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. Operational planning and control Customers & business sustaining Products / Services Processes Activities Resources Suppliers Decision flow and subordination Cost assignment flow In each decision domain, data is needed for operational planning and Cost Measurement Financial planning and control Demand management Supply management Operational Data and Cost Measurement Data Flow Copyright © 2006-7 CAM-I – All Rights Reserved
  • 4. Over Four Decades of Industry-led Collaborative Research Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. Target Costing Process Advantage Percentage Phase of Product Development 10 20 30 40 50 60 70 80 90 100 0 Brief Window of Opportunity 85% of Cost Committed 70 85 95 Percent of Life-Cycle Cost Committed 5% Cost Expended 5 30 Percent of Program Cost Expended Concept Development Preliminary Design Detail Design Production Shifting the Focus Target Costing implementation framework tailored by CAM-I provide the basis to attain desired should cost. This model has been adopted by The Boeing Company, Rockwell Collins, Crysler Corporation, Whirlpool, Dresser-Rand, Caterpillar, Texas Instruments and others.
  • 5. Over Four Decades of Industry-led Collaborative Research Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. Ad hoc Tracked Analytics Benchmark The CAM-I PMF is a holistic methodology that identifies key enablers influencing an organization`s business performance. The framework pinpoints gaps in enabler maturity and, within the constraints of the organization’s change capability, recommends specific techniques to improve performance. Level One: Rudimentary Level Two: Established Level Three: Effective Level Four: Adaptive non-systematic, non-periodic, and reactive stable and repetitive internally efficient and continuously improving externally efficient and dynamic Business/Operational Planning A&N Customer Relationship Management A&N Environmental Management A&N Financial Management A&N Human Capital Management A N Information Management A&N Innovation Management A N Knowledge Management A N Organizational Management A N Process Management A N Risk Management A N Strategic Management A N Supply Chain Management A&N Enablers / Maturity Levels 1: Readiness Assessment 2:Review and Rank Enablers 3: Assess Maturity Levels 4: Identify Maturity Gaps 5: Deep Dive Maturity Assessment 6. Use Readiness Assessment Results 7: Choose Improvement Technique 8: Measure Improvement Performance Management Framework (PMF)
  • 6. Over Four Decades of Industry-led Collaborative Research Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. The CAM-I ABB Closed Loop Cost Assignment Cost Assignment Financial Results $ Target Results Financial Balance Adjust Consumption Adjust Demand $ Operational Balance Resource Capacity Adjust Capacity Shortage or Excess Activity Requirement Activities Consumption Rates Products & Services Demand Requirements # Resources Resource Requirement Consumption Rates # Adjust Resource Cost Strategic Plan Adjust Price Closed Loop Planning and Budgeting Close Loop Planning and Budgeting framework developed by CAM-I has been extensively implemented by member companies for resource and output optimization.
  • 7. Over Four Decades of Industry-led Collaborative Research Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved. Resource Decision Domains Process Product Customer/Market Strategic Management Processes Activity-Based Cost Management Capacity Management Target Costing Closed Loop Planning and Budgeting Extended Enterprise Process Management Integrated Performance Management Risk Management Asset Management CAM-I Strategic Management Process Model Copyright © CAM-I – All Rights Reserved