Why develop a Process Cost Analysis approach?

The following questionnaire will allow us to define, based on your current purchasing practices, what would be the improvement followed by the implementation of a process cost analysis methodology.

Duration : < 5 minutes

Do you know how to measure the production costs ?
-Do you provide your suppliers with target prices?

-If Yes, How do you estimate the target?

-What would best describe your sourcing process ?


-Do you ask your suppliers for a cost breakdown ?

-How Many of your suppliers give a cost breakdown with their offers?

-If you ask for a cost breakdown, or if you would have to, what would you be looking for as a detail level ?


-Do you perform a Run@Rate at start of production ?


-Which of those items would your supplier consider as confidential?

-How do you drive your supplier performance in cost ?

-During your annual negotiation with a supplier, how many loops are required to achive your target ?

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