Cost and Profitability Management

Understand and Demonstrate the Value of Business Enabling Functions - the group’s objective is to assist member organizations to understand and quantify the value business support functions bring to organizations. A principle-based Value framework has been designed for functions who want to understand how internal stakeholders view value. The framework has 9 value principles which enable member organizations to consistently define the value business support functions bring to an organization. This framework will thereby allow cost and value trade-offs to be quantified.

Defining Value for Services - Value Analysis is an optimization methodology of aligning resources (cost) in proportion to the relative importance of Customer Functional Requirements. Value Analysis historically has been applied to manufacturing. However, it is equally effective for Service Industries and general process improvement. Services can present nuanced challenges in quantifying the processes performed and the associated importance to the customer. The group will continue to expand pilots of value analysis for services.

Cost Management and Target Costing

Strategic Cost and Profitability Value Management Roadmap - CAM-I has contributed significantly to the field of Cost, Process and Performance Management. This group is using existing the CAM-I body of knowledge to create a maturity roadmap. By using the roadmap, member organizations can benchmark their position in terms of maturity and what next steps to take to improve their organization. Plans are also being formulated to add data analytics, modeling and artificial intelligence.

Other areas include work developing the following guidebook -

  • A Primer on Value Analysis that includes Value Management, Value of Business functions, Principal Based Value Framework and Cost and Profitability Management.