- Develop skills of attendees in order to have a systemic approach on cost of manufactured products
- Understand Manufacturing Cost Drivers with a factual methodology
- Calculate Real Cost of Production and Profitability
Issues addressed
- Price Breakdown (Market Picture) vs Cost Breakdown (Actual cost Picture)
- Price and Cost Breakdown management, critical analysis
- How to measure production costs during a Plant Tour?
- Manufacturing Cost Improvement Plan
- Cost Drivers identification
- Total Cost of Ownership
- Quick costing
Program
- General
Introduction
- Total Cost of Ownership
- Price and Cost Breakdown
- Virtual
plant tour (using a simulation game)
- Direct
and Indirect cost structures
- Purchasing Handling Costs
- Added Values
- Overhead (unique approach to
understand overheads)
- Debate on Overhead allocation rules
- Configuration
analysis
- Effect of Annual needs on cost
- Effect of Set Up and Batch size on costs
- Effect of Efficiency improvement on cost
- Effect of Electricity increase on cost
- …
- Direct
and Indirect cost structures
- Cost
Model Approach
- Quick costing for New programs
- Profitability analysis on existing products
- Input to Strategy definition
Learning outcomes
- Identify cost drivers in a production process
- Check list of elements to collect during a plant tour
- Build a basket of opportunities
- Prioritise actions through a pareto approach
- Build robust estimation tools (for quotes to customers or estimation of targets to suppliers)