FACTON EPC 8 Should Costing (English)

L E A D I N G I N E N T E R P R I S E P R O D U C T C O S T I N G | W W W . F A C T O N . C O M

FACTON EPC Should CostingOptimizing purchasing with Enterprise Product Costing (EPC)

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“Industrial enterprises need

FACTON EPC to make the right

decisions in global

competition.”

Prof. Dr. Bernd Gottschalk | CEO AutoValue GmbH |

Former President of the German Automotive

Association (VDA) | Former Daimler Board Member |

Chairman of the Board FACTON GmbH

01.09.2016 | FACTON Trade Secret & Copyright, for authorized use only2 |

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FACTON GmbH – Leading in Enterprise Product Costing (EPC)

Foundation: 1998

Locations: Potsdam, Dresden, Stuttgart,

Detroit (USA)

Main investor: Hasso Plattner

Market leader in Enterprise Product

Costing

An increasing number of international

users in the following industries Automotive

Aerospace

Mechanical Engineering

High-tech and Electronics

Overview Customer & employee development


54

69

86

93

2227

35 36

57

64

72

80

2013 2014 2015 2016e

Employees (total) Employees (R&D) Customers

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Many international companies already control their product costs more efficiently with FACTON EPC

Brose | Eberspächer | +GF+ | FORD | HARMAN | HELLA |

LEONI | MAHLE | MANN + HUMMEL | PORSCHE | REHAU |

TE Connectivity | TI Automotive | Trelleborg Vibracoustic |

WOCO

Automotive

AIRBUS | Constellium | MTU | PAS | PFW | Premium Aerotec |

SAFRAN Aerospace

DEUTZ | HAUNI | HUMBEL | MBB Palfinger | WITTENSTEINMechanical

Engineering

Dyson | PHOENIX CONTACT | STEINEL | WeidmüllerHigh-tech and

Electronics


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TOP MANAGEMENT

Streamlined processes and targeted reporting facilitate effective enterprise management

Sound analyses and profitability calculations accelerate the decision-making process, thereby enhancing growth and profitability

CONTROLLING

Uniform standards

for calculation processes,

methods and data content

ENTERPRISE PRODUCT COSTING (EPC)Product cost transparency and management throughout the entire product life cycle

Calculation, analysis and optimization

of product costs and profits throughout the

entire product life cycle

Enterprise-wide integration

of departments and their data

Target cost-oriented design and manufacturing

concepts result in optimized costs

PRODUCT DEVELOPMENT

AND PRODUCTION

FACTON EPC enables standardized product costing throughout the entire product life cycle

PURCHASING

Cost and value analyses deliver sustainable

purchased parts optimization

Faster sales proposals with clear pricing

ensure profitability

SALES

ERPPLM


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Target-oriented value creation in procurement takes place in a complex business environment

| FACTON Trade Secret & Copyright, for authorized use only | 3/1/2016 6

Different departments contribute to

value creation in procurement

Processes run enterprise wide in part

Each department has its own systems,

some of which are not integrated

A large amount of the relevant cost

information is contained in Excel files

The knowledge and experience of

individual experts determine the

success of cost optimization actions

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Conventional tools such as Excel do not provide a solution for purchased part

price analysis and prevent efficient cost management in procurement.

Challenges of efficient product cost management in procurement

Lack of transparent cost structures at suppliers

Lack of expertise regarding the manufacturing technologies used by suppliers

Lack of a database for useful benchmarks

Lack of knowledge of actual cost drivers

Lack of supplier integration in cost management

Lack of standardization in proposal management on the supplier side

Time and expenditure to prepare cost calculations drive the analysis volume and

thus the success of Should Costing.


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FACTON EPC 8 Should Costing for successful purchasing


EPC 8 Should Costing

Standardized surcharge calculation

Action management

Target costing

Benchmark data

Cost models

Reporting

Offline capability

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FACTON EPC 8 Should Costing

~ 100 locations

~ 1,000 location factors

8 industries

~ 900 machines

~ 250 materials

~ 12,500 wages & social costs for 15

qualification levels

~ 29,000 overhead rates

Laser welding

MAG welding

Transfer pressing

Plastic injection molding

Machining

Die casting

PCB assembly

Benchmark data Cost models


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Setting targets at the calculation

level, finished part level, or

individual component level

Targets for sales prices and

manufacturing costs

Automatic variance analysis

between current and target costs

Definition of technical and commercial

actions for cost optimization within the

cost calculation

Control of action implementation based

on implementation levels and times

Transparent overview of current costs,

target costs, delta and the effects of

actions

Central definition of actions – catalogs

in the master data

Target costing Action management


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Integrated reporting for value analysis

and cost comparisons

Convenient export feature – to Excel,

PDF, etc.

Standard Microsoft technology

Powerful reporting


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Offline availability of cost calculations

and master data for on-site costing at

suppliers

Standardized cost component splitting

Surcharge calculation as a method

Costs are determined based on

reference date, location, company and

industry

Dynamic labor cost calculation

Dynamic machine hour rate calculation

All kinds of options for assigning tools,

systems and special direct costs

Offline capability Surcharge calculation


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And ultimately, considerably increase the success of negotiations through much broader expertise.

Added value of FACTON EPC Should Costing

With FACTON Should Costing, you can

Make supplier cost structures transparent and comparable

Perform a detailed assessment of the supplier cost structure based on benchmark data

Review and assess supplier production times using FACTON cost models

Agree on actions together with suppliers and track their impact

Increase the analysis volume through more efficient Should Costing


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Thank you!


Contact

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Phone: +49 0331 - 400

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Business

FACTON EPC 8 Should Costing (English)