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CII’s TCM Cell offers…

Free Preliminary Study

The TCM Cell will conduct a free preliminary diagnostic study, to determine
Is your Cost Strategy
the benefits of a detailed study and submit a proposal. On acceptance,
a detailed study and facilitation of implementation by CII will follow. competitive enough?
Detailed TCM Study
The TCM Cell will interact with the organisation’s team and will facilitate the
implementation of various TCM tools such as:
n Activity Based Costing (ABC) n Target Costing
n Activity Based Management (ABM) n Balanced Scorecard

These tools are an organisational enabler for:

n Production/Process Improvement n Scrap/Waste Reduction
n Value analysis of all activities - company-wide n Energy Cost Reduction
n Cost of quality analysis n Logistics Cost Management
n Raw material optimisation n Warranty Cost Management
n Inventory Management n Marketing/Distribution Costs
The detailed TCM study will help in identifying cost saving projects in the above areas.
In-house Training Program
CII’s TCM Cell will conduct an extensive training program, which will enable employees
to recognise the mechanics of the TCM process. This program will provide & equip them
with the TCM tools and techniques to improve their processes and deliver services to
customers more cost effectively.
Cost Improvement Programs
This special program will serve to tap cost saving proposals from the company
personnel themselves by dividing them into several panels. A one-day seminar will be
organised during which these panels will discuss and present specific cost saving projects
that will be examined by an internal review committee. Accepted proposals will be taken
up for implementation.

For further details please contact: K.V. Mahidhar

Total Cost Management will put you ahead...

Confederation of Indian Industry
35/1,Abhiramapuram 3rd Street,
Alwarpet, Chennai – 600 018
Tel: 044-4660430 (D) / 0570 /1311
Fax: 044-4660312
Website: Confederation of Indian Industry
Total Cost
Tools employed by the TCM Cell
Measures the cost and performance
n Activity Based Costing of activities, products, customer and


Identifies opportunities for

n Activity Based Management improvement and helps in eliminating
non-value added activities.

(TCM) n Target Costing

A structured approach to determine
and achieve the product cost with
specified functionality &quality, and to
generate the desired level of profitability.

An integrated approach to address

sourcing, operations management,
n Supply Chain Management inventory management, logistics cost
management, customer service,
demand flow and distribution.

Identifies opportunities for cost reduction

in process industries covering all costs
The Need for TCM
Process Improvement
ISSUES CII’s TCM Cell Services
of operation including Raw Material
optimisation and Scrap/Waste reduction.

Can Identifies opportunities for energy saving

Increase in global competition has resulted in Cost Management w
our p e re d The prime objective of CII’s TCM Cell is to impart cost
h a re m e r increrices anduce our n Energy Cost Reduction in all Thermal and Electrical energy
becoming a mantra in many Indian companies. In order to offer the W hic b l e c u s t o ase c yet
ta s? valu ustome management tools to the Indian industry, using which consumption areas.
profi segment e? r

Do spit effo
final customer a value-based product at a lesser cost, and thereby organisations will be able to manage cost, increase

p r o a n d ct co o u r

ou e co rts?
f i t t h e sts

Customer/Distributor Wise Measures the profitability on distribution

How well informed

r c st
du r e

are our sourcing

a b ir

gain competitive advantage it is essential that cost management customer satisfaction and improve their profitability.

os cu
Profitability Analysis channels and customers.
pro h a t a


ts tti

go ng

addresses not just individual activities or cost centres but the entire n

Balanced Scorecard A vehicle to help companies translate
value chain. and implement strategy

Understanding this requirement, the Confederation of Indian Industry Cell’s Uniqueness
The TCM Cell’s activities focusses on
has established the Total Cost Management (TCM) Cell to provide Cost
CII-TCM Cell, through a panel of internal & external various sectors including
Management Services to the Indian industry. experts, brings in an integrated approach to improve the
TCM – Strategy for the Future cost competitiveness of the Industry. Manufacturing Services
n Engineering n IT
Total Cost Management is a company-wide n Foundry n Banking
The Cell offers a gamut of cost management services
Business Scenario – A Metamorphosis n Automobiles & Auto Ancillaries n Financial Services
systematic and structured approach, which provides a with total solution and facilitates implementation.
n Ceramics n Hospitals
Earlier Now holistic framework to control, reduce and eliminate costs, n Rubber Processing n Retail
throughout the value chain. This process of managing n Tyre
Utilisation Resource Driven Market-led
Business Process Simple Complex the financial outcome of activities encompasses all n Steel
Product Range Narrow Wide n Glass
Costs High Variable Costs High fixed Overheads operations, internal and external. For these reasons,
n Pharmaceuticals
Pricing Cost Plus Market driven
Life Cycles Long – Medium Short
TCM is one of the most powerful tools that corporations n Chemicals
Competition Local/Domestic International can wield in their quest for competitive advantage. n Food
Customers Undemanding Demanding n Paper
n Cement
n Sugar
n Textiles