Over the entire product life cycle, companies are continuously challenged by changing circumstances that have an impact on their product cost targets. A precise forecast of the achievable costs as well as an active modeling are the key drivers of a target cost management.
Early and accurate determination of costs in an E2E process is the key to actively influence costs over the product lifecycle
Effective cost management needs to cover the whole organization
For an effective cost management, the abilities to
- understand cost drivers,
- identify cost down measures,
- implement a cross-functional cooperation
are key for success.
In many companies the right methods, tools, or capabilities for an effective cost management are simply not available. Therefore, a sufficient cost baselining, forecasting, and influencing needs to be established.
How we tackled the challenge
We supported an effective cost management with:
- the right tools used by cost experts from our Center of Excellence Costing
- cross-functional collaboration in validation and realization
Our strong project management integrates our Costing experts with the departments.
Tools & methods used in active cost management
Delivered! The start of a new journey
With this setup we helped to establish the capability of capturing cost-reduction / avoidance opportunities of 15-25 percent. Furthermore, we reduced barriers between functions. To reach sustainable value-capture the company created a new cost-engineering department enabling the organization for bottom-line impact in a collaborative activity with purchasing, supply chain and engineering in an end-to-end process.
“The implementation of cost experts in a supportive manner helps to transform the effectiveness of collaboration between different functions and suppliers. Use the full potential of your network!”
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Working with the most qualified Tsetinis Consultants is key to your success.
Speak with an expert in your industry who can help you move your company toward your specific goals. We implement our expertise in a very specific and targeted way and tailor the choice of methods to your individual requirements. In this way, we can ensure your long-term success.
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Product Profitability Programs
Implementation of Cost Engineering / Cost Management