Case Studies

A few of the cumulative experiences of our team members across a broad range of EPM areas like ABC based-cost systems design, Standard Costing for manufacturing, Internal Controls, KPIs aligned to corporate objectives, MIS systems for performance reviews, Cost optimization using Shared Services for the Finance function including Process standardization and automation, cost optimizations while relocating a data centre of a US semiconductor MNC from the US to India etc. are presented below.

 

 

Optimizing Software Product R&D costs

Picture2 CASE 3

The Problem

A listed Telecom software IT major providing software services & products to global customers needed to strike a balance in R&D spends for new product development spanning multiple years,  while maintaining a targeted quarterly profit margin – necessitating careful selection of R&D Projects and continuously monitoring the profitability of products in it’s portfolio – with a greater focus on “predictive” focus than “historical”  since R&D costs once committed in advance are rarely “rolled-back” unless the product road-maps are altered or scrapped altogether.

ABC in Manufacturing

 

Picture1-CASE 1

The Problem

Accurate Cost Estimation method for a Telecom Equipment Manufacturer selling in a newly deregulated Indian market that witnessed aggressive bids from foreign & domestic players in the late 1990s

The newly setup company produced advanced Telecom transmission equipment for the Indian market that was expected to grow vary rapidly in the coming years due to pent-up demand being released by deregulation.

Cost Optimization in setting up an Offshore Data Centre

Picture2 CASE7

The Problem

A US based global Semi-conductor giant planning to upgrade its global DRS and Data Centre operations wanted to move significant processing power to its off shore development centre. The equipment costs are significantly high and required immediate cash outflow for which the corporate HQ in USA was not willing to move cash out the US.

Managing Large Projects Capex

Pharma Capex CASE 5 Image 2The Problem

A bulk drugs manufacturing company wanted to expand business by taking up new molecules for commercialization. This entailed capex of upto Rs 300 Crores (approx USD 43 million) –  over one year. Delays in completing the project would adversely impact revenues, profitability and cash flows.

Costing system & KPIs at a School Chain

The Problem

Picture2 CASE8

A large educational group required a costing system for compliance purpose and for better Cost management. Education Industry has a different operating process where in revenues and revenue collections are known in advance and the profitability is dependent on effective cost management. Further, education industry has variety of support services like transportation, accommodation, cafeteria, books, uniforms etc.,. which make it a business of businesses.

Setting Standard Costs for Pharma Products

The Problem

Establishing standard costs for products in a Process Manufacturing setup like Pharmaceuticals can become a critical, strategic exercise if initial pricing decisions are to be based on the estimated standard costs. SPharma Std Costs Image 1 Case 6imultaneously – variance of actuals over the computed standards needs to be monitored so that the gaps are not significant – as frequent revisions of standard costs would be a costly and time consuming affair, while not updating standards in light of significant variances can lead to over / under costing – impacting organizational profitability performance adversely.

Measuring Organizational & Employee Performance

Achievement evaluation flat isometric vector.

The Problem

A listed Telecom software IT major providing software services & products to global customers needed a comprehensive information system for continuous monitoring of it’s SBUs performance against internal (Budgets) and external benchmarks as part of a system for measuring performance of SBU Heads, conduct of periodic performance reviews and aligning employee performance to  employee long term goals

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