Advanced Cost and Price Analysis for Procurement and Contract Management

1. Introduction
2. Objectives - Principles and Methodologies 00:02:27
3. Objectives - Developing Advanced Skills 00:03:18
4. Objectives - Applying Analytical Tools and Techniques 00:04:25
5. Objectives - Enhancing Negotiation Strategies 00:04:52
6. Objectives - Managing Contracts 00:07:26
7. Introduction to Cost and Price Analysis 00:09:58
8. Significance and Goals of Cost and Price Analysis - Significance 00:10:28
9. Significance and Goals of Cost and Price Analysis - Goals 00:17:39
10. Key Concepts and Definitions 00:20:50
11. Total Cost of Ownership 00:24:25
12. Introduction to Cost and Price Analysis - Overview 00:26:03
13. Delivery, Strategy, Negotiate, and Tender 00:26:32
14. Is There A New DNA For Commercial Practice? 00:32:50
15. Cost Estimating Techniques 00:37:40
16. Cost Estimating Techniques - To Achieve Tasks 00:37:53
17. Rough Order of Magnitude (ROM) 00:38:54
18. Budgetary 00:40:47
19. Definitive 00:41:37
20. Cost Estimating Techniques –To Achieve Goal 00:43:06
21. Analogous 00:44:25
22. Parametric 00:46:34
23. Bottom-Up 00:49:48
24. Three-Point Estimating 00:51:39
25. Cost Analysis and Control 00:56:51
26. Cost Elements and Structures 00:57:01
27. Direct vs. Indirect Costs 01:06:35
28. Cost Allocation Methods - Direct Allocation 01:08:27
29. Cost Allocation Methods – Step-Down Allocation 01:11:24
30. Cost Allocation Methods  – Reciprocal Allocation 01:13:07
31. Cost Allocation Methods  – Activity-Based Costing (ABC) 01:17:53
32. Cost Allocation Methods  – Absorption Costing 01:21:18
33. Cost Allocation Methods  – Variable Costing 01:22:09
34. Cost Allocation Methods  – Joint Cost Allocation 01:24:49
35. Price Analysis Methods 01:25:38
36. Market Research for Pricing Strategies 01:25:47
37. Benchmarking in Cost Analysis 01:28:56
38. Historical Price Analysis 01:29:24
39. Price Analysis Methods –Regression Analysis 01:29:46
40. Price Analysis Methods –Regression Analysis - Types 01:30:55
41. Price Analysis Methods –Regression Analysis - Usage 01:32:11
42. Price Analysis Methods –Price Indices 01:33:39
43. Price Analysis Methods –Price Indices- Types 01:34:25
44. Price Analysis Methods –Price Indices - Usage 01:34:43
45. Evaluating Supplier Cost Proposals 01:35:28
46. Evaluating Supplier Cost Proposals - Analyzing Labor, Material, And Overhead Costs 01:35:35
47. Evaluating Supplier Cost Proposals - Total Cost of Ownership (TCO) Analysis 01:35:48
48. Negotiation Strategies Based on Cost and Price Analysis - 01:36:00
49. Negotiation Strategies Based on Cost and Price Analysis - Integrating Cost And Price Data 01:36:05
50. Negotiation Strategies Based on Cost and Price Analysis - Developing Negotiation Positions And Tactics 01:37:57
51. Contract Management for Cost Efficiency 01:40:15
52. Contract Management for Cost Efficiency- Managing Changes And Claims 01:40:22
53. Contract Management for Cost Efficiency - Performance-Based Contracting And Incentives 01:40:58
54. Contract Management for Cost Efficiency - Monitoring And Controlling Contract Costs 01:41:05
55. Advanced Analytical Tools and Techniques - Cost Modeling and Simulation 01:41:25
56. Advanced Analytical Tools and Techniques - Cost Modeling and Simulation - Purpose And Usage 01:41:27
57. Advanced Analytical Tools and Techniques - Cost Modeling and Simulation - Monte Carlo Simulation/Scenario Analysis 01:42:00
58. Advanced Analytical Tools and Techniques - Risk Analysis and Management 01:42:09
59. Advanced Analytical Tools and Techniques - Life Cycle Costing 01:43:06
60. Summary 01:43:40
61. Any Questions? 01:44:56
62. Contact Information 01:45:06
63. Presentation Closing 01:8:54

• 

  Jim Bergman

  Jim is an experienced contracts attorney and procurement professional with international management consulting experience in the procurement field in the USA, UK, Europe, China, India, SE Asia, the Middle East, Africa and Australia. He has experience working in both the public and private sector on [...]

  View Full Profile

• Activity-Based Costing (ABC) 01:17:57
• Artificial Intelligence (AI) 00:32:56
• Blockchain 00:33:04
• Commodity 00:24:41, 00:25:15, 01:42:17
• Contract 00:00:09, 00:01:30, 00:07:37, 00:29:36, 01:40:34
• Cost 00:02:44, 00:04:50, 00:06:49, 00:15:18, 00:26:18, 00:30:30, 00:57:22, 01:41:13
• Cost Analysis 00:00:07, 00:01:52, 00:09:56, 00:11:02, 00:21:23, 00:51:40, 01:07:56, 01:27:57
• Direct Allocation 01:08:27
• Direct Costs 01:06:48
• Due Diligence 00:28:04
• Forecast 00:36:11, 00:41:40, 00:56:22
• Indirect Costs 01:06:50
•  Joint Cost Allocation 01:24:50
• Negotiation 00:28:48, 00:35:04, 00:42:05
• Price Analysis 00:00:07, 00:01:52, 00:03:27, 00:09:57, 00:11:02, 00:35:49, 01:29:33
• Procurement 00:00:08, 00:01:29, 00:03:09, 00:10:11, 00:13:24, 00:26:27, 00:34:17, 01:15:22
• Reciprocal Allocation 01:13:07
• Regression Analysis 01:29:57
• Risk Analysis 00:15:28
• Risk Management 00:14:48
• Rough Order of Magnitude (ROM) 00:37:54, 00:38:54, 00:42:53
• Stakeholders 00:56:35, 01:16:33, 01:38:10
• Step-Down Allocation  01:11:24
• Supplier 00:02:51, 00:05:48, 00:11:45, 00:13:44, 00:21:26, 00:28:00, 00:32:11, 01:16:23, 01:21:21, 01:27:11, 01:42:18
• Supplier Relationship Management (SRM) 00:36:04
• Total Cost of Ownership (TCO) 00:24:36, 00:57:07, 01:35:53

Activity-Based Costing (ABC) : Activity-based costing is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. Therefore this model assigns more indirect costs into direct costs compared to conventional costing.

Artificial Intelligence (AI): Artificial intelligence is intelligence demonstrated by machines, as opposed to the natural intelligence displayed by humans or animals.

Blockchain: Blockchain.com is a Bitcoin block explorer service, as well as a cryptocurrency wallet supporting Bitcoin, Bitcoin Cash, and Ethereum. They also provide Bitcoin data charts, stats, and market information.

Commodity: A basic good used in commerce that is interchangeable with other goods of the same type.

Contract: A written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.

Cost: The sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location

Cost Analysis: The primary reason for conducting cost analysis is generally to determine the true (full) costs of each of the programs under analysis (services and/or products). You can then utilize this knowledge to: Identify and prioritize cost-saving opportunities.

Direct Allocation: Direct allocation is a cost accounting method that assigns costs directly to products or departments.

Direct Costs: Direct costs are expenses that directly go into producing goods or providing services, while indirect costs are general business expenses that keep you operating. Examples of direct costs are direct labor, direct materials, commissions, piece-rate wages, and manufacturing supplies.

Due Diligence: Due diligence is a process or effort to collect and analyze information before making a decision or conducting a transaction so a party is not held legally liable for any loss or damage. The term applies to many situations but most notably to business transactions.

Forecast: A method used to predict inventory levels for a future time period.

Indirect Costs: Indirect costs are costs that are not directly accountable to a cost object. Indirect costs may be either fixed or variable. Indirect costs include administration, personnel, and security costs. These are those costs that are not directly related to production. Some indirect costs may be overhead. Examples of indirect costs are production supervision salaries, quality control costs, insurance, and depreciation.

Joint Cost Allocation: "Joint Cost Allocation" in purchasing refers to a method of distributing the shared costs incurred when buying multiple products or services that share the same production process, essentially dividing the total cost among all the resulting items based on a chosen allocation method, like physical units or relative market value, at the point where they become distinct products.

Negotiation: The trading deliberations which generally lead to the lowering of prices by the vendors.

Price Analysis: Price Analysis is the process of deciding if the asking price for a product or service is fair and reasonable, without examining the specific cost and profit calculations the vendor used in arriving at the price. It is basically a process of comparing the price with known indicators of reasonableness.

Procurement: Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. Procurement is used to ensure the buyer receives goods, services, or works at the best possible price when aspects such as quality, quantity, time, and location are compared.

Reciprocal Allocation: The reciprocal allocation method is a cost allocation method that distributes service department costs to other departments. It's also known as the reciprocal method, matrix method, or cross-allocation method

Regression Analysis: Regression analysis is a set of statistical methods used for the estimation of relationships between a dependent variable and one or more independent variables. It can be utilized to assess the strength of the relationship between variables and for modeling the future relationship between them.

Risk Analysis: Risk analysis is a technique used to identify and assess factors that may jeopardize the success of a project or achieving a goal.

Risk Management: is the process of identifying, understanding, and grading risks so they can be better managed and mitigated.

Rough Order of Magnitude (ROM): A "Rough Order of Magnitude" (ROM) is a preliminary, high-level estimate used in project management to provide a ballpark figure of a project's cost and duration, typically done early in the planning phase when detailed information is limited, giving a rough idea of feasibility without aiming for pinpoint accuracy; essentially, it's a "best guess" based on available information to assess if a project is worth pursuing further

Stakeholders: A stakeholder is a party that has an interest in a company and can either affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees, customers and suppliers.

Step-Down Allocation : Step-down allocation is a cost allocation method that distributes costs from one cost center to another in a sequential order. It's also known as the sequential or stair-step method.

Supplier: A supplier is an entity that supplies goods and services to another organization. A supplier is usually a manufacturer or a distributor. A distributor buys goods from multiple manufacturers and sells them to its customers. Similar Terms. A supplier is also known as a vendor.

Supplier Relationship Management (SRM) : Supplier relationship management is the discipline of strategically planning for, and managing, all interactions with third-party organizations that supply goods and/or services to an organization The objective of SRM is to maximize the value of those interactions.

Total Cost of Ownership (TCO) : Total cost of ownership is a financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system. It is a management accounting concept that can be used in full cost accounting or even ecological economics where it includes social costs