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Consulting Areas >>Cost Consulting |
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Activity Based Cost Management (ABCM) |
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ABCM is the key focus area of the Cost practice at KP Consulting. Our methodology is simple and easy to implement. It is a people based exercise, with all departmental heads fully understanding and owning up their departmental costs and deliverables. In Activity Based Management, the end-to-end Business processes of the enterprise, is broken down to various activities. These activities are identified as Value-added and Non-value added activities and efforts are taken to optimize these activities. Activity-Based Costing goes beyond traditional accounting methods to recognize causal relationship of cost drivers to activities. Information relating to profitability of various segments Customer, product, service etc., is used to make strategic decisions.
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Strategic Cost Consulting |
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Every organization follows different strategies to compete in the market. These strategies are a result of '3 Strategic Cs' i.e. Corporation (Our own company), Customer and Competition. These '3 Cs' compel every business to have certain strategy. Cost behaviour in case of each strategy significantly changes. In Strategic Cost Consulting, we help clients build their costing systems in such a manner that the cost behaviour, controlling, monitoring and reporting in each strategy is understood and addressed in an appropriate way. We help our clients in making their strategy explicit in their Cost Consulting practice.
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Target Cost Consulting |
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This is a Cost Consulting process that delivers greater profits and customer satisfaction than the traditional costing methods. The difference - the conventional approach is to evaluate costs after production, target costing makes you to evaluate costs before production begins. It is the method to design a product based on a pre-specified cost by gathering marketing input or customer needs. Target Cost Consulting is not about cutting costs by x% across the board. Its purpose is to spend money where it will have the greatest impact on meeting customer needs and stripping back expenses in other areas that are less critical for winning the business.
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Energy Cost Consulting |
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In many organizations, utilities management is a neglected area or an area which doesn't get the required attention. This is despite the fact that energy cost accounts for as much as 10-15% of the total manufacturing cost. The problems that go unnoticed are constant energy leakages and the equipment inefficiency. This typically happens because the equipment is running and the work is not affected. But when we realize the cost of such negligence, then only we appreciate the value of the enormous potential in Energy Cost Consulting. At KP Consulting we have a team of experienced Energy management consultants having vast experience in the areas of Electricity, Steam, Compressed air & Refrigeration and cooling.
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