Transparent, reproducible identification of process time and process cost during the production process in the automotive industry
To be able to compete on global market you have to compare market prices in order to know the target prices on the world market (benchmark). Because many companies do not know these values and do not have a basis, this market price analysis comes with great expenses. Furthermore, many products were given to system suppliers and sub suppliers, which is why much know-how of planning, work management, construction, purchasing and sales got lost. Therefore, the demand for technology processes, processing time analysis and data content has risen.
Furthermore, during the product development process it is required to present all costing parts reproducible and transparent, from concept phase to series production and post calculation.
Transparency of Product Costs during Product Life Cycle
Change requests, learning curve effects, to OEM granted savings, inflation and sales fluctuations outline the necessity of a dynamic look on product cost calculation. Only by considering the whole product life cycle can competetiveness be ensured for the future. Especially in early phases of product development before start of production (SOP) is the potential for cost influences as well as the risk for wrong investments at its peak. Also after SOP is a regular and systematic comparison of the actual costs and the earlier planning costs an indispensable precondition for an effective cost optimization. Thats the only way to track changes. There is nothing worse than going into a price negotiation with wrong informations such as parts life cycle, state and content of the price negotiation, technological and constructive changes.
Reproducibility of Product Costs during Product Life Cycle
How much should a part cost? This question often cannot be answered validly. Data for comparison often is missing in order to make a suppliers‘ offer or a new technology plausible without great expenses. If many different employees calculate a product it is necessary to use the identical and calid results in the calculations. With the CALC4XL technology you are capable to identify processing times and machine design of any different production process in detail. Complemented with the benchmark datebase of the CALC4XL-Datacontent you are in the position to calculate the costs of production processes without being designated engineering expertise.
CALC4XL strenthens professional buyers and sales representatives mutually in upcoming negotiations. It enables them to operate an effective supplier benchmarking and to convince with transparent, reproducible and easily comprehensible product cost calculations.
QUOTE: Do not shun to produce reproducibility and transparency in the process costs and to discuss them in all levels. If every single employee in a company knows the actual costs he or she will be willing to open up new cost potentials.
„Knowledge is power. Transparency is knowledge.“
Dipl.-Ing. Wolfgang Sievers Shareholder in CALC4XL GmbH