Improving Profitability Via Cost Control With The Cost Of Production Performance Package

Abstract

The Web-based Cost of Production Performance Package ena-bles competing participant teams to improve company profita-bility through cost control. They assess the underlying reasons for any increase in the cost of production for each product with-in their brand portfolio during each decision period. This deci-sion support package (a) extracts and presents industry R&D expenditures on cost of production reduction through process improvement, company market share, company and industry shipments, and company ending inventory and overtime produc-tion in units for each product from the simulation results, and (b) identifies the antecedents of the cost of production for each product. Competing participant teams use this package to exer-cise marketing control. They set cost of production goals, moni-tor performance, identify deviations, understand the underlying reasons, take corrective action and thereby exercise marketing control.