Proactive cost management through standardized, enterprise-wide product costing independent of location and department.
Only proactive cost management leads to sustainable, profitable growth. The prerequisite for this is a standardized, enterprise-wide approach: Enterprise Product Costing (EPC).
Cost management in practice
In practice, effective product cost management usually fails in the face of three main challenges:
Proactive cost management in practice: FACTON EPC
FACTON EPC meets these challenges.
FACTON EPC standardizes calculation methods across all disciplines and throughout the entire enterprise, thereby unifying calculation tools from different departments into a single costing application.
EPC bridges the gap between PLM and ERP systems, making it possible to perform product costing throughout the entire life cycle.
The most critical factor in the success of an EPC solution is the ability to take control of the costing bill of materials (BOM).
It combines relevant information from the development and production BOMs, thus bridging the gap between PLM and ERP systems. This type of clearly structured costing BOM can include purchased parts, work schedules (routings) and variants with labor, machine, overhead and project costs, for example. This makes it possible to display all types of costs – both by cause and in the desired level of detail. Integration with existing IT systems enables businesses to build a cost model across the BOM that spans the entire life cycle.
EPC – Product cost transparency and management throughout the entire product life cycle
The costing BOM is the foundation of proactive cost management.
Moreover, FACTON EPC integrates all business areas:
Read the whitepaper "Active Cost Management with Enterprise Product Costing" to learn more about the basics of the EPC method.