6. Spending
analysis
Casting
31%
Machning
16%
Hard ware
9%
Supplier A
28%
Supplier B
13%
Plastics
42%
1. Categorization
2. Year spending analysis
3. Total spend by category
4. Total spend by supplier
5. By country
6. By product life cycle
7. By technic requirement
8. By quality requirement
9. By size , material
10. By 80/20……
7. Spending
analysis
0
20
40
60
80
100
120
As is Material saving Lobor/equipment
cost saving
SGA saving Transporation
saving
To be
1. Standard cost structure
analysis
2. Total cost of ownership
3. Material cost is the
majority
4. Tooling cost
5. Labor / equipment cost
6. Return of investment