Price & Cost Analysis
Togap Siagian, MBA, CPSM
Togap Siagian, MBA, CPSM
CAREER
Senior Manager of Strategic Procurement - PT Vale Indonesia (current), ConocoPhillips Indo...
AGENDA Price Analysis is..
Price Analysis Techniques
Price Analysis vs Cost
Analysis
Cost Analysis Defined
Cost Analy...
Price Analysis is …
the process of examining and evaluating a
proposed price without evaluating its separate
cost elements...
Price Analysis Techniques
Historical Price
Comparison with
previous prices for
same or similar items
Parametric
Uses relat...
Simpler
Price Analysis
Price
Comparison
Adequate
Price Analysis vs Cost Analysis
Cost Analysis
DetailedLevel of Analysis
C...
Cost Analysis Defined
Cost analysis is a
thorough assessment
of the direct and
indirect costs leading
to the final price o...
Reasonable for the
goods or service
Allocated
proportionally to each
cost component
Allowed for the
goods or service
Cost ...
Common Cost Elements
Personnel
Work Hours
Resources
Indirect Costs
Other Costs
Hours work by the personnel
Financial cost,...
ZExample 01 - Fuel Cost Analysis
Example 02 - Flight Cost Analysis
Discussion
of 12

Price Analysis and Cost Analysis

Sharing about price analysis and cost analysis processes, principles and items to be considered in developing them. These analysis processes will be very helpful to procurement or purchasing personnel in order to bring the maximum value to their organization
Published on: Mar 4, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - Price Analysis and Cost Analysis

  • 1. Price & Cost Analysis Togap Siagian, MBA, CPSM
  • 2. Togap Siagian, MBA, CPSM CAREER Senior Manager of Strategic Procurement - PT Vale Indonesia (current), ConocoPhillips Indonesia, Inc., PT Freeport Indonesia, PT Omron Manufacturing of Indonesia EDUCATION MBA Rochester Institute of Technology, BS in Industrial Engineering Institut Teknologi Bandung CERTIFICATION CPSM (Certified Professional Supply Management) from ISM (Institute for Supply Management) AFFILIATIONS Institute for Supply Management USA, Indonesian Procurement Society (Co-Founder & Board of Expert) CONTACT Phone: +62 811 9 851 861, email: togap.siagian@gmail.com
  • 3. AGENDA Price Analysis is.. Price Analysis Techniques Price Analysis vs Cost Analysis Cost Analysis Defined Cost Analysis Philosophies Cost Analysis Examples
  • 4. Price Analysis is … the process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit
  • 5. Price Analysis Techniques Historical Price Comparison with previous prices for same or similar items Parametric Uses relationships between technical and cost with known historical values Price List Compare offered price to catalog price of same or similar items Comparison of proposed prices received in response to a RFQ or RFP Competition Market Research Issue RFI, conduct FGD, attend trade associations review catalog Other Price from the Bidder Analysis of other pricing information from the bidder
  • 6. Simpler Price Analysis Price Comparison Adequate Price Analysis vs Cost Analysis Cost Analysis DetailedLevel of Analysis Competition Inadequate Method Cost Breakdown
  • 7. Cost Analysis Defined Cost analysis is a thorough assessment of the direct and indirect costs leading to the final price of the goods or service
  • 8. Reasonable for the goods or service Allocated proportionally to each cost component Allowed for the goods or service Cost Analysis Philosophies
  • 9. Common Cost Elements Personnel Work Hours Resources Indirect Costs Other Costs Hours work by the personnel Financial cost, protection from loss Number of personnel required Raw components or machine time Warehousing, transportation, taxes
  • 10. ZExample 01 - Fuel Cost Analysis
  • 11. Example 02 - Flight Cost Analysis
  • 12. Discussion

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