Automotive Supplier Behr Optimizes Product Cost Worldwide

Efficient variant management and rapid price calculation using FACTON.

Using costing software FACTON, Behr GmbH is capable of detecting existing cost drivers from product development and throughout the production cycle. The company thus creates new savings potentials and produces higher profitability with FACTON. Furthermore, a simple and seamless variation administration accelerates bid costing. The manufacturer of vehicles’ air conditioning systems and motor cooling substantially boosts its competitive position in a global marketplace. Introducing FACTON worldwide as a standard costing solution additionally improves the company’s go to market position.

OUR CUSTOMER

Behr GmbH & Co. KG, Stuttgart, is a systems partner of the international automobile industry. Behr Group specializes in automotive air conditioning and engine cooling systems and is one of the world’s leading manufacturers and suppliers of original equipment for passenger and commercial vehicles. Group sales in the 2006 business year came to around 3.2 billion Euros ($4.5 billion). Behr employs some 18,600 staff at 18 development locations, 30 production sites and 13 joint ventures worldwide.

REQUIREMENTS

Due to highly individualized products, Behr generates up to 50 different variations for each type of vehicle. The previous process of bid costing using Excel-applications was extremely time-consuming and labor-intensive considering such a wide variety of products. Lacking clarity and transparency in Excel further complicated the cost accountants’ work. In order to achieve a more robust review of variations, Behr looked for a powerful software system solution that helped to identify the savings of future manufacturing activities. In addition, the software was required to more efficiently facilitate Behr international product cost optimization, which - until then  - had been an enormous task considering the 30 production sites all around the world.

THE PROJECT

In 2005 a decision was made to choose FACTON’s Cost Process Optimization solution. With FACTON, Behr had found a solution that is engaged during product development creating significant savings potential. Engineers, purchasing agents, controllers, and product managers automatically provide FACTON with their data. Relevant ERP-, PDM- and CAD-data complement the respective systems via interfaces. Based on the data, FACTON establishes a calculation which is capable of simulating and further optimizing the manufacturing cost throughout the entire project stage - in fact even before starting production. Cost drivers can be identified and manufacturing cost can be reduced by choosing alternatives at an early stage.

In collaboration with Behr, FACTON developed additional modules which helped to fulfill the automotive supplier’s particular needs: a variation matrix makes it possible to easily edit and change the parts list of product variants. The Product Cost Monitoring module facilitates product cost optimizing worldwide by outlining savings potential and the state of individual cost-saving measures.