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Your Contacts Key Benefits Deloitte is your Full-Service Partner
Target Costing in Disruptive TimesDiscover the Next Level Target Costing Approach
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Deloitte provides audit, risk advisory, tax, financial advisory and consulting services to public and private clients spanning multiple industries; legal advisory services in Germany are provided by Deloitte Legal. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 244,000 professionals are committed to making an impact that matters.
This communication contains general information only not suitable for addressing the particular circumstances of any individual case and is not intended to beused as a basis for commercial decisions or decisions of any other kind. None of Deloitte Consulting GmbH or Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte network”) is, by means of this communi-cation, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.Issued 05/2017
Dr. Nikolaus [email protected]: +49 (0)89 29036 7604
Bjoern Schroeckhaas Senior [email protected]: +49 (0)711 16554 7349
Matthias [email protected]: +49 (0)89 29036 7503
For more information please visit:www.deloitte.com/de
TARGET
COSTING
High value for the customer and financial success (product and process)
From analysis to implementation, Deloitte has deep methodological expertise paired with technological understanding.
01 02 03 • Quick hypothesis-based assessment
• Strong and committed team with expertise in engineering, procurement, finance and your industry
• IT architecture and implementation capabilities
• Change Management know-how and tools
• Collaborative, conceptually profound, solid hands-on and pragmatic working style
• Tailored with proven methods approach and off-the-shelf adaptable solutions
• External benchmarks of efficiency aspiration levels
• World-wide network with experts from industry and science
• Experience in large programs and stakeholder management
• Advanced analytics
• Visualization
• Cloud
• Big Data
• In-memory computing
• Process robotics
CommunicationGet everybody onboard with individual, receiver-oriented messages
TrainingEnable the organization and meet individual training needs
LeadershipChange starts at the top through leading by example
Behavioral changeEstablish a persistent mind-set change
Fully implemented Next Level Target Costing
Analyze Design Implement and Anchor
• Full commitment of organization to cost targets
• Increased cost transparency
• Faster decisions and fewer iterations
• More effective steering and reduced effort
• Deeper understanding of key value drivers
Improved effectiveness and higher efficiency are the key benefits of Next Level Target Costing.
We supply enabling technologies
Our cross-functional expertise and know-how
• Increasing variety of product features and versions
• Shortened development cycles
• New service business models
• Isolated data silos
• Increasing software integration
• Development cooperation across industries
• New laws and regulations
Six key success factors provide answers coping with new requirements.
The Deloitte Next Level Target Costing Approach
Value focus
• Focus on high value parts
• Optional use of capacity through application of the Pareto principle
Lean steering mechanism
• Set targets at an adequate (higher) level and foster self-organization
• Effective controlling aligned with development processes and appropriate knowledge level (detail)
Common data and language
• Unified data access points provide ad-hoc 360° cost information to all stakeholders
• Big Data and analytics support the target costing process
Target setting
• Early alignment of top-down and bottom-up targets requires strong coordination between requirements, technical feasi-bility, and costs
• Set binding targets for all functions
Outside-in view
• Use information from outside to validate cost targets, forecasts, and concept decisions
• Make it a new standard to challenge cost implications
Cross-functional governance
• Enable cross-functional views on targets, forecasts and decisions
• Determine balance between organi-zational robustness and agility
Next Level
Set direction and targets early across functions
Challenge your cost targets from outside in
Install cross- functional governance
Focus on substantial value
Use common data and language
Establish a lean and simplified steering mechanism
The Next Level Target Costing Approach can help you to overcome these challenges
“How can we align product features and cost targets in a leaner process? Currently, my engineers spend more time working on costs than on the actual product.” - Product Manager “How can we derive realistic cost targets with rapidly changing cus-tomer preferences and regulatory requirements?” - Engineer
“Which are the key levers in order to keep costs down across the different variants?” - Product Cost Controller
“What are realistic aspiration levels for generation leaps in technology? And what is the impact on my nego-tiation targets?” - Purchaser
“How can we leverage all the cost data hidden in various systems?” - Data Scientist
Shifting requirements pose great challenges, which make it hard to ensure target cost control in fast- paced development projects.
Typical Challenges
Target Costing
