Center of Excellence Costing

Early and accurate determination of costs in an E2E process is the key to actively influence costs over the product lifecycle

Effective cost management needs to cover the whole organization

For an effective cost management, the abilities to

• understand cost drivers,
• identify cost down measures,
• implement a cross-functional cooperation

are key for success.

In many companies the right methods, tools, or capabilities for an effective cost management are simply not available. Therefore, a sufficient cost baselining, forecasting, and influencing needs to be established.

How we tackled the challenge

We supported an effective cost management with:

• The right tools used by cost experts from our Center of Excellence Costing
• Cross-functional collaboration in validation and realization

Our strong project management integrates our Costing experts with the departments.

Tools & methods used in active cost management

Delivered! The start of a new journey

With this setup we helped to establish the capability of capturing cost-reduction / avoidance opportunities of 15-25 percent. Furthermore, we reduced barriers between functions. To reach sustainable value-capture the company created a new cost-engineering department enabling the organization for bottom-line impact in a collaborative activity with purchasing, supply chain and engineering in an end-to-end process.