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 View schema »Production Cost - Detailed« ) and on the cost share of the imputed sale price for identifying cost drivers (see View schema »KPI« ) in the Key Figures view.

Toggle View Schemes

Toggle View Schema

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

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

  2. Click on the desired view schema.

    3. This switches the view schema.

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

Note

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

View schema »Production Cost - Detailed«

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

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

 

View schema »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.