貝恩咨詢分析方法-rcp3

Author:LairdReedCostPositionRelativeMarch19981AgendaTherelativecostposition(RCP)conceptApplicationsRCPStepsClientexampleChallengesKeytakeaways2ContextRelativeCostPositionExperienceCurveCostSharingAnalysisBestDemonstratedPracticeValueChainAnalysisProfitHuntProductLineProfitability/CostAllocation/ActivityBasedCostingOverheadAnalysisFixed/VariableAnalysisDirect/IndirectAnalysisCostsCustomersCompetitorsCapabilitiesRelativecostposition(RCP)isakeyanalyticaltoolusedforcostanalysis.3FullPotentialBainusesRCPtodetermineacompany’spracticalfullpotentialcostpositionbasedonacomparisonofitsunitcostswiththoseofitscompetitorsandanunderstandingoftheclient’sbusiness.LowestcostPracticalcost4QuestionsRCPCanHelpAnswer

RCPanalysishelpsanswerbothstrategicandtacticalquestions.StrategicquestionsTacticalquestionsInwhatareasdoourcompetitorshavethebiggestcostadvantage?Whatisdrivingcompetitors’profitability?Howmuchflexibilitywouldourcompetitorshaveinapricewar?Whatistheclient’smarketposition?Whatarethestrategicimplicationsofthefullpotentialcostposition?Whereshouldwefocusourcostreductionefforts?(e.g.,wagerates,amountsofrawmaterialinputs)Whichcostelementswoulddecreasesignificantlywithanincreaseinscale?Whichcostelementsmightbenefitfromdifferentbusinesspractices?5AgendaTherelativecostposition(RCP)conceptApplicationsRCPStepsClientexampleChallengesKeytakeaways6ApplicationsBainidentified$29MMinannualsavingsforachewinggummanufacturer.AnRCPanalysisledtoadecreaseinrawmaterialsusage,betterrawmaterialspurchasing,processimprovements,andmoreefficientinventorymanagement.Bainhelpedaclientinthediaperbusinesstakebackmarketshareithadlost;itsshareincreasedby10%theclienthadascale-drivencostadvantage,butwasmaintainingasignificantpriceumbrellaBainusedanRCPtoidentifyapriceabovetheclient’sbreakevenbutbelowthecompetitor’sbreakeventhisstrategyhadasubstantialpositiveimpactontheclient’ssalesandprofitsBainpreventedaclientfrommakingapooracquisitiondecisioninthebakeryproductsmarket.TheRCPshowedthatonecompetitorofthetargethada30%costadvantageandthatthetargetwouldnotbeabletoclosethatgap.BainhasusedRCPeffectivelyformanyclients.ExamplesofBainworkinclude:7AgendaTherelativecostposition(RCP)conceptApplicationsRCPStepsClientexampleChallengesKeytakeaways8ApproachesTherearetwowaystoapproachanRCP:detailedbottom-upanalysisortop-downanalysis.Detailedbottom-upanalysisTop-downanalysisBuildupeachmajorcost

elementforkeycompetitors

basedonprimarydataTriangulateusingcostdata

frommultiplesourcesLessaccurate,lesstimeintensiveComparecompetitors’coststructurestoclient’scoststructureatmacroleveldefinekeyprocess/businesspracticedifferencesformajorcostelementsmakeassumptionsaboutthecostimpactofdifferencesTestassumptionsvs.overallfinancialdataMoreaccurate,moretimeintensiveOftentimesweuseacombinationofthesetwoapproaches9RCPStepsMapthebusinessvaluechainIdentifycostelementsanddriversScourinformationsourcesforcostdataonclientsandcompetitorsBuild,compare,andrealitycheckcostbarsCalculatepracticalfullpotentialcostpositionandsavingsDrawstrategicimplicationsProcessStepsKeySuccessFactorsMapvaluechainfromendtoend(e.g.,rawmaterialstofinishedproductordelivery)TiecoststooperationsnotaccountingcategoriesBuildupcostbarscategorybycategoryRealitycheckresultsagainstsimilarcompaniesFocusonareaswiththegreatestpotentialforcostsavingsAdjustforclient’ssituation(e.g.,differentstrategy(highqualityvs.lowquality),differentequipment,different

plantlocations)Determinehowtotakeadvantageoftheimproved

costpositionBepersistentandcreative,butethicalDoinganRCPinvolvesseveralsteps:10AgendaTherelativecostposition(RCP)conceptApplicationsRCPStepsClientexampleChallengesKeytakeaways11YummyGum*-Background*DisguisedclientcaseYummygumhasasolidhitchhikerpositioninthepremiumgumcategory.However,Yummy’s1997returnsarewellbelowexpectationsYummyhastriedtocompetebyintroducingnewandcostlySKUsandincreasingadvertising.ItsmaincompetitorhasfocusedoncostreductionHowcanYummyimproveprofitsinapremiummarketthatrequiresinnovationandstrongbrandequity?Situation:Complication:Question:BainusedRCPtohelpitsclientYummyGumimproveitsprofitability.12RCPStepsMapthebusinessvaluechainIdentifycostelementsanddriversScourinformationsourcesforcostdataonclientsandcompetitorsBuild,compare,andrealitycheckcostbarsCalculatepracticalfullpotentialcostpositionandsavingsDrawstrategicimplicationsProcessStepsKeySuccessFactorsMapvaluechainfromendtoend(e.g.,rawmaterialstofinishedproductordelivery)13YummyGum-ValueChainTherearesixmajorstepsinYummy’svaluechain:RawmaterialspurchasingBasemakingMixingRollingCuringPackagingUnderstandingthevaluechainfacilitatesanunderstandingofthecostelements14RCPStepsMapthebusinessvaluechainIdentifycostelementsanddriversScourinformationsourcesforcostdataonclientsandcompetitorsBuild,compare,andrealitycheckcostbarsCalculatepracticalfullpotentialcostpositionandsavingsDrawstrategicimplicationsProcessStepsKeySuccessFactorsTiecoststooperationsnotaccountingcategories15YummyGum-Costs(1of7)Rawmaterialsare25%oftotalcosts.Costdriversanddatasourcesarenoted.QualityofingredientsMixofingredientsVolumeofingredientsAmountofwasteCostofingredientsReverseengineeringSuppliersPurchasingmanagersIndustryreportsCostdriversDatasources16YummyGum-Costs(2of7)Packagingis7%oftotalcosts.Costdriversanddatasourcesarenoted.TypesofpackagingusedPackagingmaterialPackagesizeCostperpackageReverseengineeringSuppliers10K/annualreportOperationsmanagerCostdriversDatasources17YummyGum-Costs(3of7)Directlaboris17%oftotalcosts.Costdriversanddatasourcesarenoted.NumberofworkersNumberofhoursworkedHourlywages/benefitsMixofovertimevs.regularpay10K/annualreportJobpostingsPlanttourUnioncontractsOperationsmanagerCompetitorphonebookFormeremployeesofcompetitorHumanresourcemanagerDepartmentofLaborCostdriversDatasourcesManufacturingprocessLinespeed/throughputPlanttourMachinerysuppliers18YummyGum-Costs(4of7)Indirectoverheadis8%oftotalcosts.Costdriversanddatasourcesarenoted.NondirectlaborWagesandbenefitsUtilitiesNumberofmachinesCostofmachinesAgeofmachinesMaintenancecostsJobpostingsPlanttourOperationsmanagersCompetitorphonebookFormeremployeesofcompetitorHumanresourcemanagerBlueprintsUtilitycompanyEnvironmentalProtectionAgencySuppliersSupplierproductsupportdepartmentWorkshopmanagerCostdriversDatasources19YummyGum-Costs(5of7)Advertisingis15%oftotalcosts.Costdriversanddatasourcesarenoted.Advertisingcost10K/annualreportAdvertisingAge(periodical)LeadingNationalAdvertisers’AdDollarSummaryCostdriversDatasources20YummyGum-Costs(6of7)Salesandmarketingis20%oftotalcosts.Costdriversanddatasourcesarenoted.TradepromotionsConsumerpromotionsNumberofsalespeopleWagesandbenefits10K/annualreportHumanresourcemanagerMarketingdirectorInvestor/publicrelationsSalespeopleSalesmanagerJobpostingsCostdriversDatasources21YummyGum-Costs(7of7)Generalandadministrativeexpensesare8%oftotalcosts.Costdriversanddatasourcesarenoted.HeadcountWagesandbenefits10K/annualreportDun&BradstreetCorporatephonebooksHumanresourcemanagerJobpostingsCostdriversDatasources22RCPStepsMapthebusinessvaluechainIdentifycostelementsanddriversScourinformationsourcesforcostdataonclientsandcompetitorsBuild,compare,andrealitycheckcostbarsCalculatepracticalfullpotentialcostpositionandsavingsDrawstrategicimplicationsProcessStepsKeySuccessFactorsBepersistentandcreative,butethical23DataSourcesCostinformationFormeremployeesUtilitycompaniesFinancialanalysisClientsalesandmarketingIndustryexpertsMarketresearchreportsPlant/sitetoursIndustryconventionsReverseengineeringreportsProductbrochuresGovernmentfilingsandpatentfilingsSupplierinterviewsLiteraturesearchesLocalnewspapersEquipmentvendorsCustomerinterviewsCurrentemployeesLaborunionsThenextstepistoscourmyriadsourcesforcostinformation.Multipledatasourcesshouldbeusedwheneverpossible24U.S.GovernmentSourcesFederalStateLocalSecurityfilingsU.S.EnvironmentalProtectionAgencyU.S.DepartmentofLaborEqualEmploymentOpportunitiesCommission(EEOC)PatentsandTrademarksNationalLaborRelationsBoard(NLRB)ConsumerProductsSafetyCommissionU.S.DepartmentofCommerceSolidWasteGroupAirQualityBureauOccupationalSafetyandHealthAssociation(OSHA)StateInsuranceDivisionEmergencyResponseCommissionannualinventoryfilingschemicalreleaseformsEmploymentSecurityDepartmentDepartmentofEnergyResourcesDepartmentofEnvironmentalProtectionWaterBureauTownHallTaxAssessorFireMarshallChamberofCommercePlanningCommissionTownlandfill/dumpWasteWaterCollectionBuildingInspectorsIndustrialDevelopmentBoardCompanydebtofferingsCompany10KOthercompanyfilingsThefollowingaresomeU.S.Governmentsources:25ConductingaPlantTourRawmaterialswaste,spills,overuse,scrapProcessandmethodsquality,yield,alternativesLaborstaffing,supervision,workrules,machineutilizationmaintenance,changeover,downtime,bottlenecks,speedsMaterialhandlingflow,numberoftransactions,numberofpeopleInventoryamount,damaged,amountofhandling,storageefficiency,workinprocessSchedulinghoworganized,flexibility,leadtimesPurchasingnumberandvarietyofsources,standardsYoumaywanttonotethefollowingwhenconductingaplanttour:26RCPStepsMapthebusinessvaluechainIdentifycostelementsanddriversScourinformationsourcesforcostdataonclientsandcompetitorsBuild,compare,andrealitycheckcostbarsCalculatepracticalfullpotentialcostpositionandsavingsDrawstrategicimplicationsProcessStepsKeySuccessFactorsBuildupcostbarscategorybycategoryRealitycheckresultsagainstsimilarcompanies27YummyGum-RawMaterialsRawmaterialscostsarebuiltupbymultiplyingingredientcostsbytheamountofingredientsusedforeachtypeofgum.SugarSugarfreeBubbleIngredientcost/mgsweetenerbaseflavorcolor0.1￠0.3￠2.2￠0.9￠0.2￠0.3￠2.9￠0.7￠0.1￠0.3￠1.8￠1.1￠Xmgusedper100stickssweetenerbaseflavorcolor192mg107mg3mg6mg76mg204mg6mg3mg120mg125mg3mg6mgX100sticksproduced199710,202,79361,291,52215,845,631

Totalrawmaterialcost:$6.5MM$58.8MM$9.7MM

$75.0MM++28YummyGum-PackagingTotalpackagingcostsarebuiltupbymultiplyingthecostperinnerwrapbythenumberofsticksinapackageandthecostperouterwrapbythenumberofpackagesforeachtypeofpackage.

FivestickBigpackMultipackNumberofsticksperpack52010Numberofpacks(1996)

xcostperouterwrapping310,286,650

0.8908￠$2.8MM574,604,889

1.0268￠Totalcost(outerwrapping)71,825,613

1.3849￠$1.0MM$5.9MMNumberofsticks

xcostperfoilwrapping1,551,433,251

0.13￠$2.0MM5,746,048,8900.13￠Totalcost(foilwrapping)1,436,512,260

0.13￠$1.9MM$7.5MMTotalpackagingcost$4.8MM$2.9MM$13.4MM$21.1MM++29YummyGum-DirectLabor(1of2)*Thewagerateshouldbeadjustedforovertimehours.Inthisexample,noovertimehourswererequired.Directlaborcostsarecalculatedforeachstepofthevaluechain.Forthemixingstep,costsaredrivenbythenumberofhoursthemachinesarerunning,thenumberofmachines,thestaffpermachine,andthewagerate.SugarSugarfreeBubbleNumberofmixingmachinesX100sticks/machine/hourTotal100sticks/hour69935,9581996100sticks/totalsticks/hour1996operatinghours15,845,6312,660XNumberofmachinesXStaffingpermachineXWagerate*$27.082.636Totaldirectlaborcost(mixing)$1.1MM$8.1MM29421,88410,202,7935,41524.7$27.08$1.4MM1,88491,33912,05161,291,5225,08694.5$27.08$5.6MM12,0515,958++MixingRollingBasemakingCuringPackagingRawmaterialpurchasing

100sticks/machine/hour30YummyGum-DirectLabor(2of2)Thedirectlaborcostsforeachsteparethenaggregatedacrossthedirectlaborvaluechaintogiveatotaldirectlaborcostof$51MM.RawmaterialpurchasingBasemakingMixingRolling/curingPackaging$2.1MM$4.3MM$8.1MM$11.1MM$25.4MMTotaldirectlabor$51.0MM1996Directlabor31YummyGum-IndirectOverheadOverheadcostDriversCostSupervisorylaborDepreciationOverheadlaborUtilitiesRepairandmaintenanceNumberofsupervisorsbydepartmentXWageratesofsupervisorAssetregister/P,P,&EXDepreciationscheduleNon-directplantlaborersXWagerolesandbenefitsWaterandelectricitycost/unitXAmountusedofeachAverageannualcost/machineXNumberofmachines$8.2MM$6.2MM$4.4MM$3.0MM$2.1MM$23.9MMIndirectoverheadconsistsofanumberofcostcategoriestotaling$23.9MM.32YummyGum-CostComparisonTheBaincaseteam’sanalysisofeachcostcategoryforYummyanditsmajorcompetitor,Bolt,revealedthatYummy’s$0.64costdisadvantagecamemostlyfromrawmaterialsanddirectlabor.Yummy’sperunitcostdisadvantage$0.64$0.01$0.03$0.05$0.04$0.34$0$0.1723%33RCPStepsMapthebusinessvaluechainIdentifycostelementsanddriversScourinformationsourcesforcostdataonclientsandcompetitorsBuild,compare,andrealitycheckcostbarsCalculatepracticalfullpotentialcostpositionandsavingsDrawstrategicimplicationsProcessStepsKeySuccessFactorsFocusonareaswiththegreatestpotentialforcostsavingsAdjustforclient’ssituation(e.g.,differentstrategy(highqualityvs.lowquality),differentequipment,differentplantlocations)34YummyGum-PotentialSavingsTheBaincaseteamfocusedontheareaswiththelargestpotentialcostsavings.Primarydrivers:Costsavinglevers:ScalepurchasingNegotiationwithsuppliersQualityofingredientsMixofingredientsTotalamountusedper100sticksUnionvs.non-unionLocationBenefitsratesStaffing/machinecomplexitytechnologyNumberofmachinesMachinespeedRawmaterialsDirectlaborPriceAmountusedWageratesStaffing35YummyGum-RawMaterialsSavings

Note:*BainrecommendedandtheclientagreedthattheclientshouldreduceitssupplierbaseRawmaterialssavingsaccountfor$10.6MMincostreductionperyear.OpportunityQuantificationmethodologySavingspotentialSweetenerrenegotiatemint

oilpurchasingrenegotiate

sweetenercontract$1.0MM

$3.0MMpurchasingmanagerestimates

competitors’contractsBaseandflavoringlessexpensiveingredientslessingredientsperstick(lessflavorperstick)off-theshelfingredientsadjustcost/mginmodeladjustamountusedof

eachingredientinmodelOthervolumediscounts*$10.6MMsupplierdataon

volumediscountsTotalrawmaterialsavings:$1.0MM$5.6MM36YummyGum-DirectLaborSavingsDirectlaborsavings,primarilyfromreducingheadcount,areworth$14.0MMperyear.OpportunityQuantificationmethodologySavingspotentialCrewreductionseliminateunnecessarystepsconsolidateidletime$6.4MMreducethestaffing/machineinmodelLinespeedincreasereducechangeovers

(re-toolingthemachines

foranewproduct)improvetechnologyincreasethenumberof100sticks/machine/hourinmodelAutomatesomejobscasepackingstockingremoveorreducethestaffing/machineinmodel$14.0MM$5.6MMTotaldirectlaborsavings$2.0MM37YummyGum-TotalCostSavingsIntotal,Bainidentifiedandhelpedimplement$29.0MMincostreductionforYummyGum.ImprovedinventorymanagementAdvertisingsavingsConsumerpromotionsavings38YummyGum-PracticalFullPotentialCostPositionThepracticalfullpotentialcostpositionofYummyGumishigherthanBoltGum’scurrentcostsdueprimarilytoBolt’slargerscale.100sticksproduced:87.3MM126.4MM87.3MMPracticalFullPotentialSavings$0.16$0.12$0.33$0.05fromvariousothersources39RCPStepsMapthebusinessvaluechainIdentifycostelementsanddriversScourinformationsourcesforcostdataonclientsandcompetitorsBuild,compare,andrealitycheckcostbarsCalculatepracticalfullpotentialcostpositionandsavingsDrawstrategicimplicationsProcessStepsKeySuccessFactorsDeterminehowtotakeadvantageoftheimprovedcostposition40YummyGum-StrategicImplicationsYummyuseditsimprovedcostpositiontocompetemoreeffectivelyagainstBolt.Also,YummyexecutivesfocusedonobtainingfulladvantageofthepotentialbenefitsofferedinareasinwhichYummywasnotlowcost.Yummy’scomplex,yetflexible,machineryallowsforproductinnovationsthatitsmaincompetitor,Bolt,cannotmatchcosteffectively.Yummyplannedtopioneermoreinnovationslikethesuccessful“YummyBlast”.LinespeedremainsslowerthanBolt’sonaccountofYummy’sdecisiontoproducesofter,chewiergum.Someofthe$29MMinsavingswouldbeusedtopromotethesequalitiesandenhanceYummy’sbrandequity.41AgendaTherelativecostposition(RCP)conceptApplicationsRCPStepsClientexampleChallengesKeytakeaways42ChallengesWhatarethecompetitors’inputs?typesofinputsamountsofinputscostsofinputsThechallengesarounddoinganRCPtypicallyrelatetogatheringdataonandunderstandingcompetitors’coststructuresanddeterminingtheclient’spracticalfullpotentialcostposition.Whatmanufacturingprocessesdocompetitorsemploy?typesofequipmenttypesoftechnologyamountofwasteWhatpracticesdocompetitorshaveinplace?numberofshiftsamountofovertimesupervisortonon-supervisorratiodeliverymethodWhatprocessesandpracticesshouldtheclientchange/notchange?Whatimpactwillthechangeshave?Howmuchofthetheoreticalsavingswilltheclientbeabletoachieve?Understandingcompetitors’coststructuresDetermineclient’spracticalfullpotentialcostposition43AgendaTherelativecostposition(RCP)conceptApplicationsRCPStepsClientexampleChallengesKeytakeaways44Relativecostposition(RCP)isakeyanalyticaltoolusedforcostanalysisBainusesRCPtodetermineacompany’spracticalfullpotentialcostpositionbasedonacomparisonofitsunitcostswiththoseofitscompetitorsandadetailedunderstandingoftheclient’sbusinessRCPanalysishelpsanswerbothstrategicandtacticalquestionsRCPOverviewKeysuccessfactorsinclude:mappingthevaluechainfromendtoend;tyingcoststooperations,notaccountingcategories;beingpersistentandcreative(butethical)ingatheringdata;realitycheckingresults;andadjustingfortheclient’ssituationKeySuccessFactorsDoinganRCPinvolvesthefollowingsteps:mapthebusinessvaluechainidentifycostelementsanddriversscourinformationsourcesforcostdataonclientsandcompetitorsbuild,compare,andrealitycheckcostbarscalculatepracticalfullpotentialcostpositionandsavingsdrawstrategicimplicationsRCPStepsStrategicToolkit-KeyTakeaways45TakeawaySlides(1of3)UnderstandingthevaluechainfacilitatesanunderstandingofthecostelementsRawmaterialspurchasingBasemakingMixingRollingCuringPackagingFullPotentialValueChainCostBarRCPStepsFocusonareaswiththegreatestpotentialforcostsavingsAdjustforclient’ssituation(e.g.,differentstrategy(highqualityvs.lowquality),differentequipment,differentplantlocations)MapthebusinessvaluechainIdentifycostelementsanddriversScourinformationsourcesforcostdataonclientsandcompetitorsBuild,compare,andrealitycheckcostbarsCalculatepracticalfullpotentialcostpositionandsavingsDrawstrategicimplicationsProcessStepsKeySuccessFactorsMapvaluechainfromendtoend(e.g.,rawmaterialstofinishedproductordelive