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Case 1
Combatting a decline in profitability

Case 2
Realigning a facility for expected growth

Case 3
Analyzing risk vs. value to determine pricing structure

Case 4
Reducing cycle time to stay competitive

Case 5
Improving lead times and inventory control



Case 3
Analyzing risk vs value to determine pricing structure

Business Issue: Machine shop supporting chemical plant customers needed to expand their product offering from strictly supplying equipment to providing inventory management on a consignment basis.

Approach Used: Analyzed Value delivered to the client versus Risk assumed with additional responsibility. Assessed Cost Drivers and developed estimating tools to determine costs.

Results: Utilizing Cost Driver analysis, developed formula to structure product offering focusing on Price and Asset Turnover.  Business Leader can now input the key variables and the formula provides him with the deal structure to propose to the customer.


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