Developing an active costing model
To know how to estimate the final cost of products during their development phase is a major issue when trying to achieve competitiveness and time to market targets: if any adjustment is required in design or industrial footprint at a later stage, it might delay the outcome and increase the investment dramatically.
But this is not just about a having a “quick costing” that will reduce such a risk; it is also necessary to follow the evolution of these costs with a high degree of precision during the development phase at both internal and external level.
The process of costing includes three key actions: deploying appropriate costing tools and models, collecting relevant data on a regular basis and promoting the approach to stakeholders
We develop and implement an active costing approach
Our client wanted to get a cost estimate at the beginning of a product’s development based on historic cost data
Our approach combined both analytic and parametric logic in order to facilitate the best cost estimation of the various product parts. For each part we then developed reliable “master” cost models.
Finally, we developed and deployed a tool focusing on usability and scalability.
3divisions covered: Europe, US, Asia
16 000combinations studied
4 000parts with cost data
in other business sectors