Embed Size (px)
Citation preview
Total Cost Management Division
TCM Model –Service Sector
1
Total Cost Management Division
CII – Centres of Excellence
2
1
43
2
9
6
5
7
1. CII TCM Division & Institute of Logistics, Chennai
2. CII Institute of Quality, Bangalore
3. CII- ITC Centre of Excellence for Sustainable Development, New Delhi
4. CII – Avanta Centre for Competitiveness, Chandigarh
5. CII Naoroji Godrej Centre of Excellence, Mumbai
6. CII Suresh Neotia Centre of Excellence, Kolkata
7. CII – Triveni Water Institute, Jaipur
8. CII - FACES
9. CII – Godrej Green Business Centre, Hyderabad
8
Total Cost Management Division
Quality Speed
Results
Costs prices
Formidable Business Challenge….
3
Total Cost Management Division
Profitability Dilemma in business4
Total Cost Management Division
Cost Strategy in Business:
Disruptive Cost Structure
5
Total Cost Management Division
CII TCM Governance Structure
Total Cost Management Division
CII TCM Division - Purpose
“To enhance the cost competitiveness of the Indian industry through TCM
Movement”
7
Total Cost Management Division
TCM - Activities
MSME clusters Maturity Model Rating
Advisory Services
Tools & techniques
Awareness
Conferences
Training
CII TCM Division – Service Verticals
8
Total Cost Management Division
Objectives of ‘cost maturity assessment’
To grade the company’s cost management
system into a 5 level hierarchy.
To evolve a certification process.
Develop Roadmap for the industry to emerge as
a cost leader
9
Total Cost Management Division
CII TCM Model – Manufacturing sector Journey
Conceptualised by CII with industry inputs in Y 2008
IPR by CII
Pilot Study in 11 Companies
Pilot Study in Sri Lanka – 3 Companies
Assessed close to 100 companies in India
10
Total Cost Management Division
Indian Service Sector - Overview
Opportunities
1. Significant player in India’s
GDP, trade flows and FDI
2. Matured sector
3. Top 10 service exporters in the
world
4. Delivers higher per capita GDP
Challenges
1. Diverse and complex pie
2. Disruptions in customer trends,
technology and business
models.
3. Intense competitive landscape
4. Need for road map for cost
maturity
11
Total Cost Management Division
CII TCM in Service Sector – Expert Panel
1) Mr. Dipak Haksar – CE, ITC Hotels
2) Mr. Ashok Sethi – Former COO, Tata Power
3) Mr. Brijesh Mehra – Head, Corporate, Institutional banking and Transaction Banking
4) Mr. Pirojshaw Sarkari – CEO, Mahindra Logistics
Mr. Prasanna Pahade, Head Strategy, Mahindra Logistics
5) Mentor: Mr. P Thiruvengadam
12
Total Cost Management Division
Indian Service Sector – Business Challenges
1) Volatile ‘Life Cycle of Business and Service Models’
2) Diverse size of businesses – Start up to Mega-size
3) Diverse thrust – Skill, Technology, service level customization & Service Quality
4) Dynamically defining ‘customer value proposition and Delivery’.
13
Total Cost Management Division
CII TCM Maturity Model – Service Sector - Purpose
“Embedding ‘cost-economics’ in the service-delivery model
for competitive advantage and cost advantage”
14
Total Cost Management Division
CII TCM Maturity Model – Service Sector – Salient Features
1) 10 Modules
HR Module and Pricing Module are new
2) 1000 Marks Evaluation
3) Multiple module owners for each module
4) Evaluation thrust – Customer delivery model and its economics
15
Total Cost Management Division
CII TCM Maturity Model – Service Sector – Assessment Methodology
1) Enterprise Level Approach
CO & SBU Evaluation
2) Enablers 30% : Initiatives 30% : Results 40%
16
Total Cost Management Division
Minimal
160-259
Functional
260-389
Operational
390-539
TCM Enabled
540-699
Exemplary
700-1000
Levels of Maturity Model Rating -
Manufacturing Sector
17
Minimal
250-349
Functional
350-449
Operational
450-599
TCM Enabled
600-749
Exemplary
750-1000
Service Sector
Total Cost Management Division
Modules TCM Maturity Model – Service sector Modules Module Owner Marks
Module 1 Service Strategy and its integration with TCM CEO / Business Head / Head
Strategy120
Module 2 Customer & Market segmentation and TCM Head – Marketing & Sales 120
Module 3 Business Process & Operational Efficiency COO / Business Head 120
Module 4 Business Model Innovation (NPI) Head Strategy & CSO 100
Module 5 Commercial Delivery Model (Pricing) CFO / Head Marketing & Sales 80
Module 6 Human Resource Management Head – HR / COO 100
Module 7 ICT and Business Analytics connecting TCM CIO / CDO 100
Module 8 Measurement and Management Information
System and Analytics
CFO / Business Head / CIO 100
Module 9 Enterprise Risk Management Chief Risk Officer / CEO 80
Module 10 Environmental Sustainability leadership and cost
advantage
COO / Business Head 80
18
Total Cost Management Division
Model - Process
Introduction
Signing up NDA
Visit & Submission of Questionnaire
Receipt of Questionnaire
Facility Visit
2 Days Assessment by CII Team
Report Submission
19
Total Cost Management Division
Benefits:
1) Enterprise level cost and profit ownership
2) Higher visibility of the paradigm – ‘Value-Price-Cost’ at business and service level.
Enable Strategic and Operational corrections
3) Identify Price-Cost gaps for correction
Pricing service models
20
Total Cost Management Division
Current Status:
1) Extensive Exposure and work in ‘Hospitality Industry’
2) Pilot study – Scheduled
Tata Power and Distribution Ltd
21
