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Business case decision of an automatic box sorting system
Total Cost of Ownership (TCO) – Analysis of an Offshore Wind-park
Determine cost of a modified fiber processing plant and out- sourcing in a low cost country
A Calculation Scheme (schematic)! Introduction of a software-based costing methodology
Cost analysis and identifying cost potentials of Retrofitting regional vehicles
Business case decision of an automatic box sorting system
The Situation/challenge and goal
  • Define investment costs
  • Calculate the break-even potential versus a semi-automatic solution
  • Determine different variants and dimensions
  • Determine the reduction potential (cost) of a standardized process
  • Determine the non-recurring cost (specifically for development and programming)
Approach
  • Technical analysis of existing specifications
  • Cost assessment of the existing rough concept
  • Recording of the current situation
  • Conducting of cost workshops with simultaneous cost evaluation of alternative solutions
  • Preparation of the decision document
Results

The Project has will have no break-even

Using standardization processes:
A Cost reduction potential of 29% (material, production) may be achievable

A positive Business case can be represented from a number of 7 plants on

Alternative Lösungskonzepte mit Bewertung des Umsetzungsaufwandes

Total Cost of Ownership (TCO) – Analysis of an Offshore Wind-park
The Situation/challenge and goal
  • Wind-Park of this size unique
  • Besides the Wind-Generators the Transformation Platform and as well, the Land ground support, should be considered
  • Lifecycle cost previously
  • Maintenance Concept not considered
Approach
  • Cost estimate of the proposed Plant (including Transformation Platform and Land Ground support)
  • Determination and boundaries of the LCC inputs (Maintenance, Spares and repair scenarios)
  • Simulation of Life cycle cost based on premises
  • Variety of premises
  • Determine the best LCC concept
Results

Identification of costly elements during Lifetime usage

It is therefore possible to store the relevant spare parts needed

Liquidity planning for capital expenditures based on annual rates

Determination of the TCO (Total cost of ownership) with clear identification of the break-even points

Determine cost of a modified fiber processing plant and out- sourcing in a low cost country
The Situation/challenge and goal
  • Mark „one“ exists
  • Sales volume per year and countries specified by the sales department
  • Rough idea about achievable sales price
Approach
  • Calculation of cost breakdown on an existing system
  • Define changes (Delta approach)
  • Costing of the adaptions
  • Investigating various sourcing strategies
  • Assessment of different assembly structures with regards to production / logistics / pre- and final assembly for different countries
  • Consideration of a 10 years project duration including inflation / cost increase
Results

Clear determination of a reasonable target price

Cost potentials from engineering-works of around 15% identified

Cost potential from a sourcing strategy of over 19% identified

A Calculation Scheme (schematic)! Introduction of a software-based costing methodology
The Situation/challenge and goal
  • Heterogeneous calculation landscape
  • No uniform calculation scheme and methodology
  • Different Excel-spreadsheet solutions
  • Data and know-how are not centrally accessible
  • Low transparency
Approach
  • Analysis of present data and creation of a requirement concept
  • Product requirement –and functional specification document and a SW-supported calculation
  • SW alterations & testing
  • Implementation
  • pilot phase
  • training
  • rollout
Results

standardized calculation method & methodology

Transparent, comprehensible and defendable calculations

Central data and file management with authorization concept

pooled, bundled Know How

Uniform and consistent reporting

Cost analysis and identifying cost potentials of Retrofitting regional vehicles
The Situation/challenge and goal
  • Cost analysis of Retrofitting a regional vehicle
  • Determination of Cost Potential
  • Estimation of manufacturing costs for installation / conversion (Retrofitting) for a standard and a minimal solution variant
  • Establishing of development costs
Approach
  • Cost assessment of the existing vehicle
  • Definition of the changes (Delta-approach)
  • Cost assessment of the adaptions (changes)
  • Establishing of development costs
  • Estimation and Evaluation of a minimum changes (Retrofit) version
  • Analysis of the overhead cost structure of the manufacturing company
Results

Clear definition of a target price and a timeframe (Schedule) for the implementation of the changes

Transparent, defendable basis for tender negotiation

Identification of cost drivers

Assessment of alternative configurations with definition of the conversion effort

Identification of a 40% savings potential versus initial quotation (offer)

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