Identification of Cost Drivers

The cost of a product comprises a wide range of cost-driving components. The costs of a product comprise a wide range of components that drive costs. Cost drivers must first be identified in order to define cost cutting potential.

First, the costs are determined at the sub-element level. Then the costs for the parent elements are consolidated and cost drivers are identified.

The share of production costs in the total production costs are directly shown in the "% ProdC on Total ProdC" column of the Structure view. The percentage indicator gives you an initial impression of the shares of costs in BOM elements. This way, FACTON enables you to identify cost drivers to introduce cost-cutting measures.

FACTON helps you achieve your cost targets and positively influence the future product cost structure.

The share of the production costs on the total production costs is displayed for the following calculation elements:

  • Should Cost Calculation
  • Assembly
  • Part
  • Grouping
  • Material
  • Process
  • Setup process
  • Production Line

You will find further information on the breakdown of absolute costs (see "Production Cost - Detailed" view scheme ) and on the cost share of the imputed sale price for identifying cost drivers (see View scheme "KPI" ) in the Key Figures view.

Toggle View Schemes

Toggle View scheme

  • You are in the Details view, Structure view, Key Figures view or Used Objects view.
  1. Click in the view scheme combobox to the top right of a view.

    2. All view schemes for the selected view are shown.

  2. Click on the desired view scheme.

    3. This switches the view scheme.

    Alternative: Click on one of the icons right next to the combobox to activate the respective view scheme.

Note

The "Overview" view scheme summarizes all available view schemes for the selected calculation or calculation element in groups. This scheme is only available via the combobox.

"Production Cost - Detailed" view scheme

This view contains a detailed cost overview of the should cost calculation. This overview is structured in reverse order of the Costing scheme.

It is a top-down cost breakdown starting with the imputed sales price.

 

View scheme "KPI"

In this view, you will get an overview of key performance indicator (KPI) of your should cost calculation. All values in this overview are shown as cost shares of the imputed sales price.