Advanced Procurement - Analyzing Costs Using Total Cost of Ownership

As Drucker famously shared, “If you can’t measure it, you can’t improve it.” Total Cost of Ownership provides a bottom-line focus for procurement practices and analysis tools to track the outcomes of decisions like supplier selection and supply chain design over time. This series will help participants understand TCO best practices and develop their own framework within their organizations.

Short Course

Advanced Procurement - Analyzing Costs Using Total Cost of Ownership

Overview

As Drucker famously shared, “If you can’t measure it, you can’t improve it.” Total Cost of Ownership provides a bottom-line focus for procurement practices and analysis tools to track the outcomes of decisions like supplier selection and supply chain design over time. This series will help participants understand TCO best practices and develop their own framework within their organizations.

Current Offerings

There are currently no offerings for this course.

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Who Should Attend

    • Senior Leaders who want to create a consistent foundation of supply chain strategy, language, and principles across their team.
    • Leaders in business units that interact and intersect with the supply chain
    • Newer and high-potential supply chain leaders
    • Managers addressing both strategic concepts and tactical application throughout the end-to-end supply chain.

Program Benefits

    • Accelerator courses - leverage the same expert instructors that you expect from the #1 ranked supply chain department in the country
    • Participate from any location – all you need is access to the internet and a web browser
    • Focus on learning tracks - select what aligns with your organizational responsibilities
    • Develop a new network - Connect live with supply chain experts and other participants from across the country - learn how others are addressing similar issues
    • Develop a new level of understanding – we help you make the connection between concept and application to deliver immediate impact in your workplace

Program Content

Description

The most successful procurement professionals develop strong total cost of ownership (TCO)behaviors. These professionals systematically take a TCO approach into account in their procurement decisions, use analytics and spreadsheet models to analyze suppliers,advise cross-functional teams on supplier selection, design decisions, and timing considerations based on TCO analysis, and search to identify innovative solutions to optimize total cost of ownership.

To do this you need to get to know the suppliers along with their strengths and weaknesses. You need to have an eye to supplier performance improvement, ensuring that both your company and the supplier work to improve service and costs according to set targets. When issues are identified, you work collaboratively with the supplier to see that they are resolved quickly and to the satisfaction of your client.

The selection of courses below, combined into the Analyzing Costs Using TCO track, is designed to address the above topics efficiently and comprehensively, allowing learners to immediately apply lessons learned to their work.

  • Week 1: Selecting and Managing Total Cost of Ownership Projects
    • Understanding the TCO Process
    • Managing a TCO Project
    • Phase 1 of The TCO Process
    • Phase 2 of The TCO Process
    • Exploring Costs that Impact TCO
    • Overcoming Barriers to Data Collection
  • Week 2: Preparing for TCO Analysis
    • Comparative TCO Analysis
    • Using the 3As to Model Costs
    • Landed Cost Analysis
    • Global Sourcing and Competitive Bid Analysis
    • Understanding Tradeoffs in Global Sourcing
  • Week 3: “Should Cost” Modeling and Success Factors
    • Should Cost Analysis
    • Building Should Cost Models
    • Collecting and Building a Cost Database
    • Understanding Target Costing
    • Creating Win-Win Supplier Outcomes Using Should Cost Models
  • By the end of this three-week program, you should be able to:
    • Evaluate projects that have the potential to yield significant savings to the company’s bottom line by conducting cost analysis
    • Identify and measure Total Cost of Ownership (TCO) components and their impact on TCO value
    • Identify TCO components relevant to a class of products or services
    • Structure a TCO calculation model for a given class of products or services
    • Understand basic financial principals involved in calculating TCO components
  • What You’ll Learn
    • Learn why most successful procurement professionals develop strong total cost of ownership (TCO) behaviors.
    • Systematically take a TCO approach into account in your procurement decisions, use analytics and models to analyze suppliers, advise cross-functional teams on supplier selection, design decisions, and timing considerations based on TCO analysis, and search to identify innovative solutions to optimize total cost of ownership.
    • Learn how to get to know your suppliers along with their strengths and weaknesses.
    • You need to have an eye to supplier performance improvement, ensuring that both your company and the supplier work to improve service and costs according to set targets. When issues are then identified, you learn to work collaboratively with the supplier to see that they are resolved quickly and to the satisfaction of your customers and key stakeholders.

Date

Learning Path

Date/Time

9/14/20-10/2/20

Advanced Procurement – Analyzing Costs Using Total Cost of Ownership

 

Week One Live Event

Selecting and Managing Total Cost of Ownership Projects

9/18/20

12:00-1:00 p.m.

Week Two Live Event

Preparing for TCO Analysis

9/25/20

12:00-1:00 p.m.

Week Three Live Event

“Should Cost” Modeling and Success Factors

10/2/20

12:00-1:00 p.m.

Value For You and Your Organization

Faculty

Expert executive faculty who have led significant change within the private and public sectors will provide models and frameworks to help you transform vision into and action plan for results.

Customize This Program

All programs can be tailored to your organization and team, and be delivered to groups of 10 or more. Contact us about custom program possibilities. Customize Request Info 800-311-6364
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Additional Details

Our Learning Solutions Associate will be happy to hold a seat for you in this program. A reservation does not commit you to the program until you submit the registration form online. To reserve your spot, click the ‘Save my Seat’ button next the program’s offering, listed above.

Discount Rates

  • 20%: In-Person delivery, or Live Remote delivery with 20+ participants on same invoice (Contact us to register your group)
  • 10%: Live Remote delivery

Eligibility

Tuition discounts are available for:

  • DoD or government employees
  • Penn State alumni
  • Individuals who commit to earning a Professional Certificate
  • Teams of three or more attending from the same organization
  • CSCR Corporate Sponsors and other affiliated groups (with valid discount code)

After registration, you will receive access to your personal learning portal. There you can find the following information:

  • Pre-program assignments, which prepare you for the program before the start date
  • A list of program faculty and fellow registered participants
  • Travel coordination and support, if applicable

Transfers

If an accepted Penn State Executive Programs applicant finds it necessary to transfer to another session of the same program, one transfer will be allowed with no charge if arranged more than six (6) weeks prior. Additional transfers, transfers to a different program, or transfers arranged less than six (6) weeks prior incur a charge of 10% of the current program fee.

The sponsoring company may identify a replacement candidate, but the replacement candidate must be accepted for the program through an admissions review.

Refunds

The following refunds will apply for withdraws if Penn State Executive Programs is notified in writing within the time period stated:

  • Full refund with notification received more than six (6) weeks prior to start of the program
  • 50% refund with notification received between two (2) and six (6) weeks before the start of the program.
  • No refund with notification received two (2) weeks or less prior to the start of program.

Note: The registered participant or their agent must confirm all notification of withdrawals, transfers and substitutions in writing. If written notification is not received, the full program fee will be assessed.

Cancellations

The University may cancel or postpone any course or activity because of insufficient enrollment or other unforeseen circumstances. If a program is canceled or postponed, the University will refund registration fees but cannot be held responsible for any other related charges, or expenses, including cancellation/change charges by airlines or travel agencies. In the case of postponement, as an alternative to a refund, program fees may be transferred to another session of that program.

If you have any questions or concerns about our cancellation policy, please contact us to discuss further.