a) Confederation of Indian Industry conducted its annual conference on Total Cost Management (TCM) today. This flagship event was conducted by the TCM division of CII and the theme of the event was on the need on “Changing business model in turbulent times by leveraging TCM”. TCM division of CII along with its array of services facilitates companies to access cost management practices and also evaluates organizations through its maturity model and benchmarks the maturity level of cost management system. The TCM initiative of the Maturity Model calibrates the maturity levels in cost management from a base to the highest through 5 layers with differentiating characteristics at each layer. Since 2008 TCM division has calibrated 30 companies across India and this year award was given to Tata Motors commercial vehicle business unit & Wheels India Ltd.
b) Increased global competition has forced companies to think aggressively about effective Cost Management and this two day TCM conference aims to highlight the essentials that cost management addresses not just individual activities but the entire value chain. Speakers at the conference stressed on the topics like how to take TCM to logical work area, how cost management system have evolved over the years, influence of technology in TCM, global cost benchmark and the need of linking TCM to customer value proposition. Speakers highlighted the importance of TCM maturity model developed by CII as it is meant for better managing a company on a continuous basis.
c) Mr R Seshasayee, Past President, CII & Executive Vice Chairman Ashok Leyland Ltd, in his keynote address said, “Cost incurred by a company has to be linked to value and having clinical understanding of customers value proposition is very important in designing a solution in cost effective manner. Engineering cost, capital cost, operational cost and after market cost – all the 4 cost kinds have to be considered while designing a product and these cost have to be reduced to a great level to manage cost effectiveness in much matured fashion.”
d) Mr S Mahalingam, Chairman, CII, TCM Working Group and Executive Director & CFO, TCS Ltd, in his special address said,"TCM maturity model is one of its first kinds which rates the level of maturity of cost management of an organization.” He urged other organizations to participate and reap the benefit of Total Cost Management Maturity Model.
e) Mr Koushik Chatterjee, Chairman, Cost Congress 2012 & Executive Director & Group CFO Tata Steel Ltd, in his welcome & theme address said, “The objective of the event is to evolve global standards in Cost Management. Cost Management has to be linked to corporate strategies and it should not be seen as an individual component. Business model, on the other hand has to be designed in such a way that it’s tested through different economic status.”
f) Mr. Charles Tilley, Chief Executive, CIMA released theme paper on Understanding and building resilient business model. He stresses the need of an organization to understand the concept of a business model even before it starts to understand how it can build resilience. In his paper he highlights the interaction between costs, value creation and outcomes.
g) About TCM
Total Cost Management is a company-wide systematic and structured approach, which provides a holistic framework to control, reduce and eliminate costs, throughout the value chain. This process of managing the financial outcome of activities encompasses all operations, internal and external.
For these reasons, TCM is one of the most powerful tools that corporations can wield in their quest for competitive advantage.
Management theory and practice widely accept today that businesses operate in a more and more complex, dynamic, less predictable environment.
How can the companies survive, be sustainable and be progressive in the changing paradigm without knotting itself into predicaments?
The business models need transformation and align with new strategies to achieve growth in turbulent times. It also calls for rare incidences of courage and spirit, the kind that could make companies resilient in strategy execution
The key business challenge facing industries across sectors today are managing their costs across value chain. Linking business model and strategy to product costs can provide cost economics in the long term to the business.
CII has envisaged delivering success stories of companies who have linked their business model to product cost and reaped benefits there from.
§ Evolve and standardize best practices of TCM across the sectors in the industry
§ Provide a forum for sharing best practices by the industry and domain experts
Focus Areas :
§ Steering through turbulent times
§ Achieving excellence through business model
§ Re-modelling supply chain in turbulent times
§ Leveraging TCM for manufacturing excellence
§ Re-modelling reporting framework
§ Maturity Model case study presentations
§ CEO / COO / CFO
§ Team leaders across the functional disciplines
§ Finance / Operations / Marketing / Logistics / Supply Chain / R & D / Procurement
§ Practicing Cost Management & Financial Consultants
§ Management graduate from business schools
§ To derive the optimum benefits from the event, representation from both financial and non financial is solicited
Spectrum of Sectors
Manufacturing and Service Sectors including IT & ITES
Government including Public Sector
Financial Institutions / Services
Educational Institutions / SMEs
CII TCM Maturity Model - Plaque distribution
CII services the industry through a patented process of maturity model evaluation in cost management. This wholesome procedure creates a road map for organisations towards achieving the pinnacle of cost leadership in their industry
Organisations with zeal to calibrate themselves on a 5 level maturity continum in cost management systems pass through the set evaluation process.
The participating companies take their rating through the plaque & certificate distribution in the inaugural of the conference.
This conference enlightens and brings in conceptual and operational clarity on the following
Ways and means to achieve effective and robust cost structure
Inculcating cost culture, cost consciousness and cost disciplines in an organisation
Bringing in responsibility om cost ownership
Viewing cost as strategy at the broad level
Identifying drivers of cost across the value chain
You will get access to following Knowledge Resources by subscribing to the Digital
Library of this event.