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Case Study
Proactive Material Cost Management
Using data mining techniques, cost-driver analysis, and customized tools for Volume discount and VAT analysis, CGN helped a heavy equipment manufacturer improve project management governance and execution and establish an Idea Management System.
Business Challenge
Our client was faced with the following challenges:
  1. Maximizing return of material cost reduction investments beyond business plan and to the stretch target
  2. Increasing the throughput and financial benefit through faster execution (reduce mean time-to-execution on projects)
  3. Identifying gaps in meeting targets and close the gap through idea generation, focus, and issue prioritization
  4. Building tools that accelerate idea generation and tracking/delivery of results
CGN Approach
Utilizing data analysis and reporting techniques to collect, analyze, and present management information, CGN focused on obtaining solutions through:
  • Cost Management Strategy
    • Cost-driver analysis
    • Data-mining & commercial
    • Commodity trends
  • Planning & Facilitation
    • Idea management
    • Program management
    • Issue & Risk management
  • Execution & Tracking
    • Idea generation
    • Idea/Project tracking
    • Reviews & Reports
Customer Benefit
CGN was able to benefit the client by:
  • Improving Project Management governance & execution (project log, tracking, monitoring, reporting, reviews)
  • Establishing an Idea Management System (generate, collate, validate, implement, track & monitor as projects)
  • Creating tools - Volume discount, VAT, Share of Business, and support purchasing team in negotiation
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