Business cases
Automotive

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.

3

divisions covered: Europe, US, Asia

16 000

combinations studied

4 000

parts with cost data

Operations
in other business sectors

Operations
in other business sectors


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