About TCM
The complex web of factors impacting the growth and performance of Indian Industry are economic scenario, input prices, forex fluctuations, availability of skills, technology and competitiveness.
With the above challenges looming large at the industry, the greatest challenge to the industry is to produce high quality product/ service at the most economical cost. This will enable the organization to gain competitive advantage in the industry.
Why Total Cost Management is important?
In the current disruptive business era, conventional cost accounting support is limited to cost pooling, shop floor focus and provide compliance perspective to the business. Total Cost Management is a company-wide systematic and structured approach, which provides a holistic framework to control, reduce and eliminate costs, throughout the value chain. This process of managing the financial outcome of activities encompasses all operations, internal and external.
USP of TCM
TCM Philosophy is distinct from the traditional cost accounting and management, a compliance oriented and a reactive approach addressing element wise cost reduction, pursuing cost down targets. Addressing the business challenges both external and internal, and focused development of sustained cost competitive advantage is the core of TCM philosophy.
TCM Philosophy reflects the understanding of product / customer segments with the expected value proposition where in business wishes to compete and makes it as a co-ordinate in the TCM process. Value chain efficiencies, enterprise-wide cost ownership, algorithm-based cost structure are the building blocks of TCM architecture in business.
Impact Areas
Genesis
TCM division was conceptualized under thedynamic leadership of Mr. S Mahalingam, whoserved as the CFO of Tata Consultancy Services(TCS) in the early 2000s. He was supported by theTCM Working Group, which comprised expertsand freelance professionals from various industry segments.
Mission & Objectives
CII has established TCM division in late 1990’s asa part of its industry initiatives. The TCM divisionfunctions with the objective of "enhancing costcompetitiveness of Indian Industry".
Salient features of TCM
