To improve profit margins, companies have to focus on how to reduce direct material costs, shorten quote cycles, lower new-product costs, and maximize the reuse of parts. Teamcenter Product Cost Management supports companies in calculating product, tool and quote costs with greater speed, accuracy, and insight. The solution provides reliable cost estimates and transparency to achieve target costs, optimal procurement prices, and profitable sale prices.
Detailed product and cost information is typically not available early in the development phase of new products. The calculation engine in Teamcenter Product Cost Management enables you to create cost structures and determine product costs in the early stages of preliminary costing and target costing. You can calculate complex assemblies and versions accurately and quickly.
Teamcenter Product Cost Management is using the bottom-up methodology for creating a cost structure that provides a better understanding of what a product ‘should cost’ to make or buy. This approach is based on a detailed product structure and defines the use of materials and the process costs. Calculations are based on current benchmark data for manufacturing technologies, machines, materials and worldwide labor costs. Various departments, such as cost engineering, purchasing, controlling and sales, can work together by using Teamcenter to achieve the maximum benefit.