In the manufacturing industry, preparing accurate quotations is a critical process that directly impacts business success. However, manufacturers often face the challenge of creating quotes based on limited or incomplete product specifications. This article provides experts from the manufacturing industry with useful insights and best practices for creating precise quotations even in the absence of complete product specifications.
Knowing the carbon footprint of a product is essential for identifying potential to reduce emissions and improve sustainability. In our FAQ you will find all you need to know about the basics, calculation, management and reduction of your products’ carbon footprint.
Accurate product costing is a cornerstone of business success. It directly impacts pricing strategies, profitability, and competitive positioning. However, many companies struggle with common pitfalls in their costing processes, leading to suboptimal decision-making and potential financial losses. This blog article outlines the most prevalent mistakes in product costing and demonstrates how professional costing software can help companies to avoid them.
As many manufacturers strive for greater cost efficiency, they are increasingly using CAD data to optimise their cost calculation processes. CAD-based cost calculation promises faster quotations, more accurate pricing, and a seamless integration between design and financial planning. However, as with any technological advancement, the reality often differs from the ideal. While costing with CAD data offers significant advantages, it is crucial to approach it with a clear understanding of its limitations and potential pitfalls. This article aims to explore and debunk common misconceptions surrounding the use of CAD data in cost estimation.
Due to their long service life and technical complexity, defence products require significant long-term investments that must be precisely planned and budgeted well in advance. In this context, lifecycle costing has emerged as the preferred solution for the defence industry. This article explores the key elements, benefits, best practices and future trends of lifecycle costing in the defence industry. The aim is to provide companies and organisations with valuable insights for the effective implementation of this approach.
The manufacturing industry is constantly looking for methods to optimise its product development processes and remain competitive. In this context, Design-to-Cost has emerged in recent years as a meaningful strategy for companies aiming to achieve a balance between product quality, functionality and cost efficiency. This article provides industry professionals and decision makers with a comprehensive overview of Design-to-Cost and discusses its key principles, methods and tools.
Effective supplier negotiations play a crucial role in the success of any business. By securing favourable terms, companies can reduce costs, improve quality, and ensure a reliable supply of goods and services. However, negotiating with suppliers can be a complex and challenging process, requiring a strategic approach and a range of skills. In this article, we present helpful strategies for conducting successful negotiations with suppliers.
Cost engineering is a vital discipline that plays a crucial role in ensuring the financial success and profitability of projects across various industries. Understanding the basics of cost engineering is essential, whether you are a project manager, entrepreneur or financial professional. This in-depth blog post looks at the key elements of cost engineering, its processes and techniques, and its applications across different industries.
In recent years, environmental, social and corporate governance (ESG) factors have become increasingly important for companies in all sectors. The manufacturing industry plays a particularly important role due to its significant impact on the environment, its complex supply chains and its influence on local communities. In this blog post, we discuss the steps to implementing ESG practices and outline strategies that manufacturers can use to effectively manage the financial impact of ESG.
In the rapidly evolving landscape of the automotive industry, staying competitive requires more than just innovative designs and cutting-edge technology. Amidst fierce competition, fluctuating market demands, and increasing regulatory pressures, the importance of cost optimisation has never been more critical. In this blog post, we highlight various strategies that proactively contribute to the control and optimisation of product costs.
Understanding the nuances of bottom-up and top-down costing is crucial for businesses to make informed decisions that align with their financial and operational goals. This post deals with the principles of both approaches and is a helpful guide to choosing the right costing strategy.
In this article, we introduce you to the basics of Value Engineering, outline the step-by-step process and describe the numerous benefits that Value Engineering offers companies.
This article offers helpful strategies and measures with which you can optimise and reduce product development costs in a targeted and sustainable manner. You will gain insights into proven and tested methods that can be customised and applied to a variety of development scenarios.
In the first part of our three-part guide, we introduce you to the basic principles of should cost analysis and outline the most important steps for the successful implementation of should cost analysis.
In the second part of our three-part guide, we go into detail about the potential benefits that should cost analysis has to offer and outline how should cost analysis is proving to be effective in different industries.
In the third part of our three-part guide, we provide you with solutions to overcome common challenges in the implementation of should cost analysis. We also highlight how the use of professional should cost modelling software can significantly increase the efficiency, accuracy and usefulness of should cost analysis.
This article provides you with basic information on the topic of cost optimisation. You will learn how to implement forward-looking cost management, identify potentials to optimise, introduce suitable optimisation measures and thus enhance the long-term competitiveness of your company.
In this article, we explain the most important basic terms, the role that cost calculation plays in the project for every company, and which prerequisites must be met in order to carry out a reliable cost calculation. We also show which types of project costing exist and what kind of approach makes sense and when. In the last section, we look at some typical mistakes that commonly lead to incorrect values in the calculation process.
This article explains the basic concepts of cost planning in the context of customer-related projects. Detailed cost planning is essential for the management of any project, quotation, production process or work package. It shows which factors affect the total costs and how the individual items can be determined in a targeted manner. In addition, we address the question of how an optimal quotation can be conducted with which a solid pricing for customers is possible. With good cost planning, you are able to significantly minimise the risk of cost overruns and uneconomical projects.
What exactly defines the terms such as cost estimation, cost determination, cost calculation, production costs, planned costs and actual costs? How can anticipated production costs be predicted with reasonable effort, a cost breakdown into cost groups and the necessary precision? In this article we will address and give you answers to these questions.
In addition to a basic explanation of terms, this guide shows how to prepare a potential analysis professionally, select suitable criteria and perform a meaningful comparison with the competition. In addition, you identify which data sources you should use to obtain a meaningful information.
In this article you will learn how to calculate prices correctly and which errors should be avoided is at the core of product costing or product cost calculation. Manufacturing costs, cost of goods sold and the purchase prices of each individual part listed in bills of materials are the basis of any costing structure. They must be considered separately in every product costing.
This article explains how you benefit from the use of the value analysis. It provides you an overview of which targets can be realized, which elements the method consists of and the sequence it follows.