Benefit
Change requests, learning and experience curve effects, (quick) savings given to the OEM, sales and material price fluctuations, they all require a dynamic examination of product costing. Future competitiveness is only attainable when considering the entire product life cycle.
FACTON® EPC enables continuous cost tracking throughout all phases of the product lifecycle – changes in the product costs become traceable and should-is comparisons identify optimization potentials.
The potential to optimize product costs and at the same time the risk of critical investment decisions is most significant in the early phases of the product life cycle before start of production. FACTON provides early cost transparency by means of innovative costing methods. With the help of simulating various scenarios (time of investment, sales volume, target prices) the competitiveness of products and its return on investment can be determined early on and product costs can be optimized accordingly.
Comprehensive cost transparency
with Product Life Cycle Costing
The majority of cost of goods sold is created after start of production but 60 to 80 per cent of the total costs are already defined in the phases before SOP. Not only is the leverage effect the biggest in the early phases but also the risk is the highest. By providing means for alternatives simulation and validation throughout all phases of the product life cycle FACTON is the ideal tool for pro-active cost management.
FACTON offers a variety of calculation modes depending on volume and quality of available cost relevant information: From a first rough estimation – to a more detailed calculation based on experience and benchmark data – to qualified cost information such as fixed quotes, defined process times and existing cost centers.
After start of production actual-plan-comparisons help identify optimization potential and product and product profitability. Besides continuous and consistent cost tracking, FACTON offers cost optimization methods, such as target costing, value analysis, functional costs, and ABC analysis.
