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Delivering Target Costing for a global Tier-1

Case Study

Competition has been threatening margins of most firms in recent years – and every euro saved matters. In this situation, it is the quality and comprehensiveness of the approaches used that makes the difference.
 
See how we can help to make a difference by injecting best-in-class thinking combined with unique technological capabilities.

Closing the gap to competition

Managing costs is one of the major challenges in every sector to increase performance. Our client was faced with:

 

  • Increasing business loss to competition
  • Increasingly enforced price reduction from customer
  • Technical maturity and pricing of product could not keep up with competition

Technical disadvantages caused higher onetime and lifetime cost and could not keep up with product from competition

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How we faced this challenge

The team delivered the following milestones:

  • Product cost- and functional benchmark of competitor
  • Development of a catalog of commercial and technical measures based on benchmark results and best practice greenfield approach
  • Support of complete product redesign and realization within three years

Major levers used in the 3 years program

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Sustainable long-term competitiveness – delivered!

The new approach toward target costing delivered substantial benefits for our client, i.e.

  • Sales volume increase by 30 percent
  • Profitability improvement of 10 percent
  • Sustainable competitive advantage achieved by a new product design
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Tsetinis Consulting

“Successful programs need more than just cost calculation. A pragmatic, benefits driven and cross-functional approach that does not get lost in theoretic analysis only is key!”

Oliver Briegel

Partner

Speak to an expert

Working with the most qualified Tsetinis Consultants is key to your success.

 

Speak with an expert in your industry who can help you move your company toward your specific goals. We implement our expertise in a very specific and targeted way and tailor the choice of methods to your individual requirements. In this way, we can ensure your long-term success.

 

Get started now!

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Oliver Briegel

Partner

Product Profitability Programs

Implementation of Cost Engineering / Cost Management

Product Costing


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