Increased global competition has forced several companies to think aggressively about effective Cost Management, said speakers on Thursday.

Taking part in the two-day 11{+t}{+h}International conference on Total Cost Management (TCM) organised by the Confederation of Indian Industry (CII) with the theme ‘Changing business model in turbulent times by leveraging TCM,’ they dealt on topics such as how to take TCM to logical work area, how cost management systems have evolved over the years, influence of technology in TCM, global cost benchmark and the need for linking TCM to customer value proposition.

They also highlighted the importance of TCM maturity model developed by CII as it was meant for better managing a company on a continuous basis. Since 2008, TCM division has calibrated 30 companies across India and this year award was given to Tata Motors commercial vehicle business unit and Wheels India Ltd. 

In his keynote address, R. Seshasayee, CII past president said, “Engineering cost, capital cost, operational cost and after market cost have to be considered while designing a product and these costs have to be reduced to a great level to manage cost effectiveness in much matured fashion.”

Koushik Chatterjee, chairman, Cost Congress 2012, said: “The objective of the event is to evolve global standards in Cost Management. Cost Management has to be linked to corporate strategies and not be seen as an individual component. Business model, on the other hand, has to be designed in such a way that it is tested through different economic status.”