Controlling production costs in terms of defining the price positioning for its products and optimising industrial performance, is a key lever to improve operating income.
COGS modelling and analysis need to be adjusted to the challenges the enterprise is facing. The objective is to be pragmatic and enable efficient management of performance drivers, while avoiding being intrusive and imposing heavy reporting requirements on operational processes.
Our manufacturing performance experts and finance function experts support the clients in the implementation of product costing projects. Depending on the projects and maturity of our clients, we work on all or some of the following subjects:
- Analyse value chains, breakdown of costs and identify key performance factors (including correlation analyses using Big Data)
- Model the management structure (identifying profit centres and cost centres and associated management rules – including mark-up rules and indirect centre allocation rules)
- Review the structure of operational monitoring (product range, terminology, monitoring granularity, work units, etc.)
- Analyse past production orders to propose a recalibration of production standards
- Build the pricing and/or margin sheets used in product development
- Structure the analyses and build the dashboards to facilitate operational and financial performance monitoring