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MANN+HUMMEL GmbH - standardizes worldwide

The automotive supplier MANN+HUMMEL has standardized its worldwide costing at more than 40 locations with the help of the software solution FACTON. This way, management gains a reliable decision base companywide. Moreover, MANN+HUMMEL can trace and monitor its costs throughout the entire lifecycle with FACTON. Due to an exact calculation of machine hour rates the company increases its production efficiency and secures investment decisions.

The Advantages

Transparency
companywide unified data

Efficiency
calculation of machine hour rate at a yearly basis

Standardization
worldwide consistency in the costing process

Competitiveness
control and monitor cost throughout the entire lifecycle

Flexibility
freely choose machine location

 

 

“With FACTON we’ve acquired a worldwide unified costing tool and further standardized our costing” says Ursula Biederbick.

“Due to the extended machine hour rate calculation in FACTON we can take into account capacity utilization in our costing”, says Jörg Pfeilmeier. "This way, we’ve achieved additional cost transparency."

The customer

The MANN+HUMMEL GmbH is an acknowledged expert for filter and air intake systems and other components for the automotive industry. With 41 locations all over the world and 12,400 employees, MANN+HUMMEL is one of the major corporations in automotive components. In 2008 the corporation achieved a total revenue of € 1.825 billion. 

The requirements

MANN+HUMMEL was looking for a suitable costing solution that helped assure unified costing at a growing number of worldwide locations. The objective was to have a unified data base that served as a foundation for worldwide costing. A central file repository should grant access to up-to-date costing information from all locations. The costing quality should be increased by a great level of automation when entering data. Additionally, the software needed to support product and project controlling throughout the entire development and manufacturing process. 

The project

The requirements were well defined in a workshop session with the FACTON partner prosovi. Since mid of 2008 MANN+HUMMEL has been using the FACTON software. As soon as the worldwide roll out is completed MANN+HUMMEL will be using FACTON at every production and development location – for all costing processes: from bidding to cost control in mass production. For this, all locations are using a single database that holds all specifications and parameter. In case data or a template needs to be altered the headquarters centrally manage the changes which takes effect worldwide simultaneously. Only the master data is specific to the location.

With FACTON MANN+HUMMEL has control over costing throughout the entire lifecycle. Interfaces to the ERP system, the project management system and the file repository assure up-to-date information and faultless data. An important requirement concerning FACTON was the ability to calculate machine hour rate at a yearly basis and dependent on quantity and production times. The FACTON module Common Ressource Costing (CRC) offers an extended machine hour rate calculation so MANN+HUMMEL could take into account capacity utilization for its costing. This way, the company gains greater cost transparency and increases efficiency due to optimized capacity utilization. Also, machine locations can be selected freely with the CRC module. This facilitates greenfield planning –flexible project planning with only few known constraints.