Technology and processess
TARGET COST
Get the most out of your production facilities
WHAT WE OFFER
Achieving maximum utilization of production facilities is a challenge for any industrial company. The market will also often force you to set a pricing strategy determined by your current competition. This means costs cannot be passed on to customers and makes it necessary to keep within set target costs.
Staying inside objective costs means defining and implementing measures that have an impact on your gross or net margin. It also implies establishing mechanisms that guarantee you reinvest savings in areas that will allow you to generate more value.
A Sisteplant, we lead your teams in cost modelling projects whose aim is to increase the impact and effectiveness of improvement initiatives that really generate competitive cost advantages. They also focus on the need to monitor the market and your competitors to align costs with forecasts. Taking into account the need to minimize risks of loss of volume and business margin, they align all your organizational processes within expected market costs.
HOW WE DO IT
Our specialists achieve success by:
- Starting from your products’ Should Cost or cost target.
- Analyzing the extended value chain.
- Deep-diving into the structure and examining each component of your production and service costs.
- Investigating where your losses are happening and their potential.
- Identifying the key levers for process cost reduction.
- Defining Drivers.
- Establishing your Cost Management and Budgeting Model.
- Specifying the actions to be carried out at the organizational, production, planning, supply chain, technological, automation and people levels.
- Guiding the deployment of actions and their impact on bottom lines and cost convergence.
