Evaluation of the target costs of a mechatronic laser measurement system in the concept phase

Earliest cost estimate with 4cost in the design workshop with maximum deviation of 4 % (series)

Initial situation & task

  • New product development is planned
  • First concepts and ideas are available
  • At what cost can we manufacture?
  • At what manufacturing costs is the break-even point?

Approach

  • Ideas workshop with cost evaluation of the individual concepts
  • Rough structural development (parts list)
  • Evaluation of the individual components and assemblies
  • Evaluation of assembly and test efforts
  • Simulation and analysis of different scenarios

Results

  • Clear elaboration of target costs
  • The product was launched after two years
  • Cost deviation between earliest estimate and actual production costs of approx. 4 %.

Parametric evaluation of tools and fixtures

4cost identifies cost potential of 30 %, supports negotiation and realises 25 % cost reduction

Initial situation & task

  • A supplier was asked to provide a first ROM
  • Management wants clarity on the value for money
  • Internal estimates are based on “expert knowledge” without any transparency

Approach

  • A parametric calculation is created from the technical descriptions (rough specifications)
  • Creation of a rough structure
  • Parametric evaluation of the individual components and assemblies
  • Validation of assembly and test efforts

Results

  • 4cost’s Should Costing has a delta of 30 % to ROM
  • With 4cost’s technical negotiation support, a cost reduction of 25 % is achieved

Business case decision for an automatic box sorting system

4cost identifies cost reduction potential of 29 % with standardisation

Initial situation & task

  • Determination of the investment costs
  • Calculation of the break-even point compared to the semi-automatic solution
  • Determination of different variants and dimensions
  • Determination of the reduction potential with standardisation
  • Determination of one-off costs (especially development and programming costs)

Approach

  • Technical analysis of the existing specifications
  • Cost evaluation of the existing rough concept
  • Process survey of the current situation
  • Conducting cost workshops with simultaneous cost evaluation of alternative solutions
  • Elaboration of the decision paper

Results

  • No break-even point achievable as a project order
  • With standardisation: cost reduction potential of 29 % (material, production) possible
  • Business case can be positively presented from a quantity of seven units upwards
  • Alternative solution concepts with evaluation of implementation costs

Cost evaluation of a modified fibre processing plant when outsourcing to a low-wage country

Cost potentials of 15 % in engineering and 19 % in sourcing strategy according to 4cost analysis

Initial situation & task

  • Predecessor model available
  • Annual sales volumes and markets specified by the sales department
  • Only rough idea of achievable target price

Approach

  • Cost assessment of the existing plant
  • Definition of the modifications (delta method)
  • Cost evaluation of the adaptations
  • Analysis of different sourcing strategies
  • Evaluation of different assembly structures regarding production, logistics, pre-assembly and final assembly for different countries
  • Consideration of ten years project duration including inflation/cost increase

Results

  • Clear elaboration of a target price
  • Cost potentials from engineering of 15 % identified
  • Cost potentials from the sourcing strategy of over 19 % identified

Standardisation of the calculation scheme and introduction of a software-supported calculation method

Implementation of a homogeneous costing landscape implemented in ten weeks

Initial situation & task

  • Heterogeneous costing landscape
  • No uniform calculation scheme and no standardised methodology
  • Different Excel-based solutions
  • Data and know-how not centralised
  • Little transparency

Approach

  • As-is analysis and requirements concept
  • Creation of requirement and functional specifications for software-supported calculation
  • Adaptations to software and test
  • Implementation
  • Pilot phase
  • Product training
  • Rollout

Results

  • Implementation of a homogeneous costing landscape in ten weeks
  • Standardisation of costing scheme and methodology
  • Transparent, traceable calculations
  • Central data and file management with authorisation concept
  • Bundled know-how
  • Uniform reporting
  • Detailed costing 23 % faster