Cost Deployment | White Paper

The Cost Deployment: a structured methodology for cost analysis

• Cost Deployment is a structured methodology, applicable in Manufacturing processes, that allows linking transformation costs to their respective root causes.

• Identifying and consequently valuing the waste responsible for unnecessary costs allows improvement actions to be defined within the pillars of Lean World Class^® and prioritized.

• The implementation of the Cost Deployment Pillar involves a rigorous 7-Step process, each supported by appropriate analysis tools.

The end result is a process improvement plan that already has short-term benefits on the company's income statement.

What is Cost Deployment

Cost Deployment is a methodology that allows a systematic analysis of production costs aimed at highlighting and quantifying the sources of economic loss in Manufacturing processes, going to identify and measure the causes that generate them and identifying them as waste.

The goal is to provide priorities for improvement activities in a Lean World Class^® project through the ability to directly link the results achievable through waste attack activities with cost reduction targets and the resulting monetary benefits, making these results easily identifiable on the income statement.

In the final analysis, Cost Deployment provides an in-depth, analytical view of cost as a strategic variable because, by introducing a close link between cost drivers and improvement processes in the Manufacturing area, it represents a cross-pillar, a true compass, for the activities of the other pillars that make up the Lean World Class^® model.