Academy

Price Discipline Models - Examples (TCS-II-04-2)

Element of our Cost Modelling course which introduces how to estimate the "percentage of price" ratios for material, labor, overhead, etc. A must-have when analyzing suppliers and the foundation for building cost models. The technique is illustrated for a product and for a service. To get the Cost Modelling course: select a bundle in our course catalog, then click above on the button "Get all for $xxx". You will get one year unlimited access to the course and all supporting content.

    'Cost Modelling' course objectives:

  • To obtain, understand and apply a set of cost management tools that enable the transition from leveraging volume to leveraging ideas
  • To gain a better knowledge of the cost structure of goods, equipment or services procured
  • To identify data sources in building cost models
  • To apply cost models in effective negotiations
  • To use Price Discipline in long term contract negotiations
  • To apply Total Cost of Ownership principles in sourcing decisions

Content

  • U.S. Product - Steps 1 to 3
  • Direct Material Adjustments
  • Adjusting Direct Labor and Variable Manufacturing Overhead
  • Calculating Fixed Manufacturing Overhead Adjustments
  • Adjusting GSA Costs
  • What Profit Adjustments Should Be Based On
  • U.S. Service - Steps 1 to 3
  • Adjusting Direct Labor and Overhead Cost Definitions
  • Calculating Variable Service Overhead Adjustments
  • Adjusting Fixed Service Overhead
  • Adjusting GSA Costs
  • What Profit Adjustments Should Be Based On
  • South Korea Product - Steps 1 to 3
  • Direct Material Adjustments
  • Adjusting Direct Labor and Variable Manufacturing Overhead
  • Calculating Fixed Manufacturing Overhead Adjustments
  • Adjusting GSA Costs
  • What Profit Adjustments Should Be Based On
  • South Korea Service - Steps 1 to 3
  • Adjusting Direct Labor and Overhead Cost Definitions
  • Calculating Service Overhead Adjustments
  • Adjusting GSA Costs
  • What Profit Adjustments Should Be Based On
  • Germany Product - Steps 1 to 3
  • Direct Material Adjustments
  • Adjusting Direct Labor and Variable Manufacturing Overhead
  • Calculating Fixed Manufacturing Overhead Adjustments
  • Adjusting GSA Costs
  • What Profit Adjustments Should Be Based On
  • Germany Service - Steps 1 to 3
  • Adjusting Direct Labor and Overhead Cost Definitions
  • Calculating Service Overhead Adjustments
  • Adjusting GSA Costs
  • What Profit Adjustments Should Be Based On
  • Template - Price Discipline model
  • Example- Price Discipline™- Pumps

Course

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