Session 1: Traditional vs TCM Product Costing.

• Global Competition and Product Cost-Reduction.
• Shortcomings of Traditional Accounting costing - capturing processing wastes.
• Double-counting or missing costs?
• What is a Product value stream.
• Traditional Target Setting method - the 10% method.
• History of Toyota?s Genka Kikaku - Target Costing.
• The Target Cost Setting retrograde model for profitable production.
• What are Utopio, Ideal and Strategic Management costs?

Session 2: Target Costing Management

• The first stage of TCM ? Product Cost development.
• Selection of suitable products in a factory for TCM.
• The Pictorial TCM costing model - merging the technical and operational indices and cost indices.
• Definitions of various equipment downtime losses - Utilization.
• Calculation of Manufacturing Index for production capacity.

Session 3: Material Yield and Loss.

• Definitions of Direct and Indirect materials.
• Process and Material Yield losses.
• TCM Process controllable costs ? Material losses, Labor costs, Direct Expenses and Process Yield loss costs.
• Encouraging Process Ownership of costs in a factory through providing processing cost information.
• TCM Process uncontrollable costs ? Material costs, Factory overheads.
• Involving non-operational groups in Product cost-reduction plans.

Session 4: Demonstration of TCM Process Through A Lean Accounting Software..

• Identifying areas where high cost-reduction opportunities exist.
• Second stage of TCM - Target Development - Using TCM to plan Product Cost Reduction.
• Third stage of TCM ? Theme Development or cost reduction project management.

Ideal Costs, Target costs and Key concept points, estimated investments needed and duration required.