La Rilevanza delle Competenze di Cost Management nella Gestione del Valore dell’Impresa Riccardo Silvi [email protected] @RiccardoSilvi 1 Agenda • • La rilevanza dell’informazione di costo nella gestione del valore e del vantaggio competitivo Cost accounting • • • • Cost Management • • • • terminologie e funzionamento prendere le decisoni con le informazioni di costo Analizzare e progettare i sistemi di cost accounting Cost accounting vs (strategic) cost management Attività, costi, cost driver e profitto potenziale Sistemi di cost management Wrap up: cost for business modeling and business innovation 2 Current management issues in business • Increased competition • Declining profitability and difficulties in achieving business targets • Mature/Declining markets • Customers are high demanding and poor financial performance is emerging • Pricing is shifting from a value to a cost perspective • Widespread unefficiency • … 3 Current management issues and challenges • How to – – – – – improve business growth and profitability get continuos business commitment promote business innovation contain risk related to business activities and decisions exploit the business information from the battlefield into effective new management directions – explore new sources of value creation – monitor business performance MANAGEMENT ACCOUNTING KNOWLEDGE AND SKILLS CAN BE A VALUABLE SUPPORT IN MANAGEMENT TASKS 4 Cost accounting e cost management • Caso WEC • Caso Frangor 5 Activities, Costs and Cost Drivers Information flow customer Customer care MKT & sales Manufact. R&D purchasing suppliers Activities flow 6 Cost driver analysis TRADITIONAL OUTLOOK ACTIVITY Material handling Production and assembly Managing suppliers “STRATEGIC” OUTLOOK COST OBJECT ACTIVITY DRIVER 700 Product 5000 Product COST 1800 Product line COST DRIVER TYPE N. parts Lay out Product Layout Location errors Operational Operational Operational External External Internal Time Economies of scale Production capacity Quality Product configuration Structural Operational Operational Operational Internal Int/Ext External External N. parts Complexity Level of integration Product configuration Structural Operational External External 7 Cost for business modeling and innovation (Learning to see) 8 Learning to see • The chocolate company cooks cocoa, milk and sugar to make liquid chocolate Uses energy and equipment to: – – – – • Cool the liquid chocolate into chocolate bars Wrap the bars in paper for storage Storage (refrigerated warehouses) Deliver to the Candy company The Candy company receives the cooled, wrapped chocolate bars Uses energy and equipment to: – Store the bars (refrigerated warehouses) – Remove wrapping – Heat the bars until they are again liquid • The Candy Company uses liquid chocolate to make candy bars Do you see problems/opportunities here? 13 Strategic Cost Management tools and techniques • ABC/ABB/ABM • Cost driver Analysis • Process Value Analysis • Profit Potential & Value Multiplier Analysis • LCC/TOC/EVC • Extended Value chain analysis & Network cost management • Benchmarking e competitive cost analysis • Target Cost Management & Value analysis • KPI/PMS/BSC • … and …. COST ANALYTICS ATTITUDES 14 Cost Analysis research: quick evidence • A relevant part of the cost are in non value added activites (60%) • Process inefficiency is about 30% of the process cost and it increases at the overall value chain level • The proper alignment between activity, cost and value increases a profit potential in a company • Profit recovery/enhancing through the leveraging of cost is higher at the overall value chain level 15 The value of the cost 9 15 Average 40 45 4 18 Membrane dashboard and switches 37 2 19 Finance & Administration Consulting 39 42 20 11 Banking 46 50 39 8 10 45 45 Electronic systems -1 8 Frames and rolling shutters 39 21 Ice-Cream Machines 24 53 32 44 13 12 40 Wood-Working Machines 48 5 Agricultural Machines ROS Waste NVA-R VA 18 40 42 16 The Profit Potential ( McNair 1994) 17 Value analysis: The profit potential Traditional view Profit Potential Revenues Revenues - Materials and other direct costs -Materials and other direct costs - Costs for VA - Costs for FVA - Other operating costs Profit Potential - Costs for SA - Costs for W Operating profit Operating profit 18 (Fonte: McNair 1994) The profit potential Revenues 101.687 100,0% Material & components 40.742 40,1% Margin before activity costs 60.945 59,9% Value added cost 17.566 17,3% Profit potential 43.379 42,7% NVA-R cost 12.623 12,4% Waste cost 9.726 9,6% 21.030 20,7% Operating profit 19 Cost and profitability along the value chain Cost and profit along the Italian manufacturing industry value chain 120,0% 100,0% % cost composition 80,0% operating income depreciation 60,0% labour cost services materials 40,0% 20,0% 0,0% 1 2 3 4 total value chain operating income 0,5% 0,9% 1,6% 2,9% 6,0% depreciation 0,8% 1,4% 2,5% 4,5% 9,2% labour cost 2,4% 4,3% 7,7% 13,9% 28,3% services 4,0% 7,1% 12,7% 22,8% 46,7% materials 9,7% 17,4% 31,2% 55,9% 9,7% Overall value chain activity cost 85% value chain stage Specific studies: -Agriculture machinery (70%) -- Woodworking machinery (88%) - Home appliances (82%) 20 The value of the cost: cost and value misalignment What does the customer value? What do we do today? Activities % resources Produce manuals 60% Answer hotline 15% Respond to letters 5% Help locate repair or support services10% Revise manualsand send updates 10% Activities % of total value created for the customers Hotline support 60% Help locate repair or support services 20% Respond to inquiries 10% Updates and other services 5% Manual availability 5% ( McNair 1994) Specific studies: Woodworking and Agriculture machinery, rolling shutters, home appliances, Consulting and Financial Services 21 Cost analytics: comprendere la dimensione costo Attività, Costi e Cost driver Attività, costi e valore nel business system Attività, costi e valore per il cliente 22 Gli approcci al governo dei costi Complessità implementazione + Cost for Business Modelling Cost & Value Alignment Sostenibilità competitiva Livello di competenze Cost Efficiency Cost Containment - - Evoluzione temporale + 23 Gli approcci al governo dei costi COST MANAGEMENT TOOLS ABC/ABM PVA/VA SVA VCM EVC CDA LCC TCC COST MANAGEMENT ENABLERS Lean MNG Purchasing Education Cost planning Cost to Value Process & Organization Cost control TCM Capacity costing Value chain efficiency & redesign IT/WEB KM MNG Contr System Incentive & Reward 24 Cost Management Un’opportunità per: • aumentare la razionalità e l’efficacia delle decisioni • sviluppare capacità e attitudini innovative • favorire l’apprendimento organizzativo • gestire le interdipendenze organizzative e strategiche • creare un vantaggio competitivo sostenibile • supportare la creazione di valore economico 25 The Profit Potential Revenues 101.687 100,0% Material & components 40.742 40,1% Margin before activity costs 60.945 59,9% Value added cost 17.566 17,3% Profit potential 43.379 42,7% NVA-R cost 12.623 12,4% Waste cost 9.726 9,6% 21.030 20,7% Operating profit 26 Riferimenti bibliografici 27 La Rilevanza delle Competenze di Cost Management nella Gestione del Valore dell’Impresa Riccardo Silvi [email protected] @RiccardoSilvi 28
