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Determining The Real Costs
- 1. 01/26/15 @All rights retained by S3 1 At S3 - Strategic Solutions Services We can help determine the real costs. User
- 2. 01/26/15 @All rights retained by S3 2 Price v. Cost • How do you develop your pricing strategy? – Learning Curves – History – Activity Based Costing – Something else • Understanding the difference between cost & price is key.
- 3. 01/26/15 @All rights retained by S3 3 Fitting it altogether • What steps have you taken to ensure a healthy bottom line? – Is your pricing defendable? – Does it provide coverage for all of your operating costs? • Most companies really do not adequately cover their operating costs. • How do you make it all fit together seamlessly?
- 4. 01/26/15 @All rights retained by S3 4 Meeting the Needs • Cost engineering reviews and modeling can aid in your continued success. • Evaluate future trends • Provide a standard that can reverse less successful approaches. • Most importantly it can be the catalyst to turn around a poor performer into a stellar performer. • Other alternatives can have dire outcomes
- 5. 01/26/15 @All rights retained by S3 5 Analyzing the outcome • A non-biased third party with fresh eyes can yield a wealth of information – Is your labor properly allocated? – What type of burden rate makes the most sense for your business? – Where are the inefficiencies? • Large firms are expensive and often create follow-on work in the process. • We can provide solutions and train you to sustain your business and assist when needed.
- 6. 01/26/15 @All rights retained by S3 6 Let S3 s strengths enable you to SOAR! • Assessing situations efficiently and accurately. • Determining the opportunities and how to best exploit them. • Determining a strategy and course of action. • Measuring the results based on specific metrics for continued monitoring of economic health. SOARSOAR Results Results Situation Situation Opportunity Opportunity Action Action
- 7. 01/26/15 @All rights retained by S3 7 Results • 1990 – TRW Technar Inc. Honda Crash Sensor Line – $1.9M in Annual savings and Increased Throughput by 300%. • 2000 – 2001 General Motors $16.4M in Cost Savings and Avoidance • 2001-2003 Faurecia implemented Cost Standard for supplier resulting in 30% cost savings for all new business for five years. • 2003-2005 Lear Corporation identified over $50M in overcharges and established Cost Standard approach. • 2006 Burtek, Inc. Implemented lean approach to new business resulted in 50% less labor and improved profitability.
- 8. 01/26/15 @All rights retained by S3 8 Next Steps • Let’s review your needs today • Visit our website: www.s3strategicsolutionsservices.com • Email us: info@s3strategicsolutionsservices.com
- 9. 01/26/15 @All rights retained by S3 9 Thank you! We look forward to assisting you to SOAR!
- 10. 01/26/15 @All rights retained by S3 9 Thank you! We look forward to assisting you to SOAR!