Identifying and specifying target costs with Teamcenter product cost management

This case study focuses on the challenges faced by a company regarding different cost calculation tools, resulting in discussions about calculation results. The keys to success included establishing a uniform standard for product costing, achieving accuracy with SAP calculation logic, and combining tool and product costing. By applying current guidelines, conducting delta analysis, and reducing cost discussions, the company achieved improved cost-effectiveness, doubled target costing projects, reduced processing times, optimized resource utilization, and achieved cost reductions for serial products. The study emphasizes the importance of robust cost management strategies for enhancing business performance and profitability.

Key to success:

• Establish a worldwide uniform standard for product costing in the new product development process
• Achieve high accuracy in preliminary costing and use of SAP calculation logic
• Combine tool and product costing
• Apply current calculation guidelines and master data
• Conduct periodic delta analysis and initiate early controlling measures
• Reduce and objectify cost discussions
• Prepare transparent cost calculation results