Background on CAM-I
What is CAM-I
CAM-I (Consortium for Advanced Management-International) is an international consortium of industry, government and research organizations.
To serve as a collaborative forum of thought leaders who develop practical and effective management tools, techniques and methods to advance the way organizations manage costs, processes and performance.
- Founded with Department of Commerce support in 1972
- Non-Profit, 501c3, Collaborative Membership Organization
- CAM-I’s membership is diverse - Manufacturing, Service Companies, Government, Consulting Companies and Associations
University and Professional Affiliations
Technical and Knowledge Partners
- Great Lakes Institute of Management – Chennai
- Confederation of Indian Industries (CII)
- IMS International
- Institute for Defense Analyses
University and College Affiliations
- Arizona State University
- Babson College
- Kellogg (Northwestern)
- London School of Economics
- The University of Akron
- Weber State University
Organizations who have and are working with CAM-I
Current and Past Initiatives
Current Initiatives and Special Interest Groups
- Cost Management and Target Costing
- Demonstrating the Value in Business Support Functions
- Performance Management
- Environmental Sustainability
- Forecasting for procurement of complex acquisition and support projects
Other significant areas CAM-I has worked on
- Change Adaptation and Learning
- Process Based Management
- Business Intelligence
- Closed Loop Planning and Budgeting
- Operational Data and Cost Measurement
- Customer Profitability
- Capacity Management
- Resource Consumption Accounting
Target Costing and Cost Management
Target Costing Overview
The Target Costing implementation framework tailored by CAM-I provides the basis to attain desired "should cost"
Target Costing requires a sound knowledge of:
- Customer perception of value
- Design impact of components
- Accuracy in supplier cost estimates
This model has been adopted by several member companies including Boeing, Caterpillar, Chrysler, Desser-Rand, Rockwell Collins, Texas Instruments, Whirlpool and Navistar
Value itself is a function of performance (timeliness, accuracy, usefulness, quality) and cost to produce and/or provide a service
Target Value is the level of performance that a product or service must achieve in order to meet customer expectations
Achieving Target Value requires a sound knowledge of:
- Components of Value
- Activities that contribute to the components
- Level of resources consumed to hit target
- Enables organizations to channel their product/service development activities to areas which provide the greatest customer value
- Helps identify the relationship between spending and a product’s functional requirements, as defined by the customer
- Key to the successful deployment of target costing for products or services, a profit planning and cost management process organizations use to control costs during the design stage of new product/service development
Performance Management Framework (PMF)
The CAM-I PMF is a holistic methodology that identifies key enablers influencing business performance. The framework pinpoints gaps in enabler maturity and, depending on the assessed level of organizational readiness, recommends specific techniques to improve performance and appropriate measures to track the improvement.
Closed Loop Planning and Budgeting Framework
CAM-I: Types of Deliverables
- Management Accounting Guidelines.
- White papers, position papers, Standards and Benchmarks.
- Methodology – Product of developing an organized system of principles, philosophies from group experiences and applications.
- Models - Models for analytics and various business functions.
- Tools - Support the management and measurement of business processes.
- Training – Based on application by organizations, techniques, best practices, tangible ROI’s and use of current technologies.
Examples of Recent Accomplishments
- Total Cost to Serve Model, December 2019.
- The Value Analysis Process, June 2019.
- Supplier Costing method – Cost Engineer (estimator) need to Accurately estimate the Brownsfield cost to manufacture a component at a known supplier by modeling their specific processes and cost structure, June 2019.
- The Risk-Value Curve: How to optimize Risk and generate value for your organization, Public Risk, January 2019.
- CAM-I work on Integrated Risk and Value Management published in Public Risk Magazine, August 2018, and January 2019. Jennifer Hills from King County received Risk Manager of the year award.
- Building an Activity-Based Model for Environmental footprint – A proof of concept case – Cost Management Publication (November December 2018)
- Performance Management Assessment and Framework