FACTON® Enterprise Product Costing

The solution for companywide product cost transparency.

Transparent product costs and cost structures, consistent costing methods and a common understanding of costs across all departments and locations are fundamental pre-requisites to:

Enterprise Product Costing (EPC) is a concept for companywide consistent product costing which ensures product cost transparency throughout the entire life cycle.

The EPC approach is based on three pillars: (1) standardization of costing processes and methods, (2) cost tracking and optimization throughout the entire life cycle, and (3) companywide integration of all locations and departments.

As leading EPC solution FACTON supports all elements of the EPC approach and establishes product cost transparency which is essential for sustainable success.

Standardization of costing processes

A common understanding of costs across the entire company is essential to avoid comparing apples and oranges. This, in turn requires unification of the costing process. As leading EPC solution FACTON facilitates the standardization process with consistent calculation logic and valuation methods, based on the company specific costing scheme.

As standard IT tool FACTON enforces compliance with calculation guidelines and enables faster access to product cost information at significantly less administrative effort. Objectified product cost information is a better base for comparing calculation alternatives and is less susceptible to personal factors.

Considering the entire product life cycle

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.

Integration of all departments and locations

Sending out consistent and quick quotations, purchasing at optimum prices and investing in the development of competitive product innovations, all require cross-departmental co-operation and companywide cost transparency.

FACTON supplies the foundation for such collaboration by making available all cost relevant data in a central place and always keeping it up-to date. That way, all information that is required for simulations and decision-making are accessible much faster and with less effort. FACTON helps avoid redundancies, erroneous and inconsistent calculations. Due to change tracking in FACTON it is easy to reproduce what product changes were made by whom and when.