Product Cost Management more than ever required · 2018-11-01 · Product Innovation Platforms MPM...

Product Cost Management

more than ever requiredPLM Europe 2018, Berlin

Restricted © Siemens AG 2018


Siemens PLM Software

Digitalization is transforming

the Global Value Chains in

industrial markets



From ‘one size fits all’ and mass production in manufacturing…



…to mass customization and build-to-order

…and it changes the way how

product cost have to determine



Product Cost Management Slope of Enlightenment

Innovation Trigger

Peak of

Inflated Expectations

Trough of Disillusionment Slope of Enlightenment Plateau of Productivity

time

expectations

Years to mainstream adoption:

less than 2 years 2 to 5 years 5 to 10 years more than 10 years

obsolete

before plateau

As of July 2017

Enterprise Labeling

Digital Twin

Cloud-Native CAE, Simulationand Virtual Prototyping

Cloud-Native CAD

MRO PLM Functionality

Product Innovation Platforms

MPM Frameworks

Model-Based Manufacturing

Internet of Things for Manufacturing Operations

Cloud-BasedPLM

Applications

Supply Planning

Industrial Operational Intelligence

3D Printed Tools, Jigs and Fixtures(formerly 3DP-Enabled Augmented

Manufacturing)

Supplier Quality Management Applications Synchronized BOMs

Sustainable Design PLM

System Engineering SoftwareProduct Cost ManagementReal-Time SPC Applications

Quality Process Management Applications

Simulation and Test Data Management

Product Portfolio and Program Management

Plant Engineering and Design

MES Applications for Discrete Manufacturing

Value-Chain-Centric PDM

Product RequirementsManagement

Enterprise ManufacturingIntelligence

Simulation and VirtualPrototyping

Parts and Materials Searchand Selection

Cloud Computing in Manufacturing Operations

Medical Devices — PLM

Gartner_Hype Cycle for

Discrete Manufacturing

and PLM 2017



Trends and challenges in Product Cost Management

Increase efficiency World-wide

competition

Digital enterprises

and business models

Change in mindset for

digital business models

Trends Challenges

Time-to-market Productivity, Cost

and efficiency

Centralized data access

and data analyticsData driven decision

process




We think you can master this challenges and

improve your margin by up to 15%

Agenda:Digital Twin of Cost Management

Customer Success Stories

Product Cost Management More than ever required



Our holistic approach to get your margins improved

Combining the Costing and Product Development View

Actual

Cost

Production

Cost @ SOP

Change

Cost

Target

Cost

Estimate

Cost

Product manufacturer perspective

Product

Delivery

Production

execution

Production

engineering

Production

planning

Product

design

Cost Estimator/Controller view



Actual

Cost

Production

Cost @ SOP

Change

Cost

Target

Cost

Estimate

Cost




80% of product cost locked in the product design phase

Cost Reduction

Opportunities

Cost Maturity

Increase

100%

80%

60%

40%

20%

0%

Actual

Cost

Production

Cost @ SOP

Change

Cost

Target

Cost

Estimate

Cost



80% of product cost locked in the product design phase

Design-to-Cost

Profitability Calculation

Open Book Accounting

Pre & Target Costing

Purchase Price Analysis

Actual Costing

Actual

Cost

Production

Cost @ SOP

Change

Cost

Target

Cost

Estimate

Cost



Teamcenter Product Cost Management

Creating the most holistic Digital Twin of Cost Management

Design-to-Cost





Actual Costing

Actual

Cost

Production

Cost @ SOP

Change

Cost

Target

Cost

Estimate

Cost



feed back insights to continuously optimize product cost


Creating the most holistic Digital Twin of Cost Management

Design-to-Cost





Actual Costing

Virtual Product

COSTING TWIN

Virtual Production

COSTING TWIN

EXECUTION

COSTING TWIN

Actual

Cost

Production

Cost @ SOP

Change

Cost

Target

Cost

Estimate

Cost



Estimate Cost – Product Costing – BoM Integration

Design and

estimate

the product

cost

Teamcenter PCM

Teamcenter Gateway

Teamcenter 12.x

3DVis viewer

1 2 3 4 5



Marquardt, Germany – Automotive, Electronic and Semiconductor

Marquardt Group enhances product costing processes using

Teamcenter product cost management

Business challenges

• Implement standardized cost modeling

and processes

• Enable more accurate costing for an

increased number of product variants

Main Customer benefits• Improved product cost transparency

• Increased speed, consistency and

accuracy of cost estimates

Page 16

Keys to success

• Employ consistent companywide costing

methodology

• Deliver sustainable documentation and

traceability of cost estimates

• Reduce the time to create cost estimates



Estimate Cost – Tool Costing – NX Collaboration

Design and

estimate

the production

tool

Teamcenter PCM

NX Feature2Cost

1 2 3 4 5



Wirthwein, Germany – Tool Maker

With Teamcenter, plastic components manufacturer generates cost

calculations 50% faster

Business challenges

• Increased tool variance and complexity

• High number of requests for quotations

• Shorter time periods for bid preparations

• Transparent breakdown of quotation items

Main Customer benefits• Up to 50% time savings

• High accuracy of quotation prices

• 40% more quotes due to automatic

generation of CBD

Page 18

Keys to success

• Fast accurate tool costing based on

3D-data

• Automatically creation of customer cost

breakdowns (CBD)

• Utilize customized tool technologies



Successful Target Costing

Plan and target

cost setting of

your production

processes

Teamcenter PCM

TcPCM 4S SAP

ERP (SAP)

1 2 3 4 5



Festo, Germany – Industrial Machinery

Identifying and specifying target costs with Teamcenter product cost

management

Business challenges

• Use of different cost calculation tools

• Significant efforts spent in discussions

about calculation results and basis

• Identification of deviation from cost

calculation to the later serial calculation in

the ERP system

Main Customer benefits• Doubled the number of projects

• Reduced processing times

• Reached serial cost reductions

• Cost-optimized new products

Page 20

Keys to success

• Establish a worldwide uniform standard

for product costing in the new product

development process

• Achieve high accuracy in preliminary

costing and use of SAP calculation logic

• Combine tool and product costing



Digital Twin of Cost Management

Virtual Product

COSTING TWIN

Virtual Production

COSTING TWIN

EXECUTION

COSTING TWIN



Change Cost – different Plant for product realization, Design

update

Validate and

update product

and process

cost

Teamcenter PCM

Teamcenter Gateway

Teamcenter 12.x

3DVis Viewer

1 2 3 4 5



Siemens AG, Germany - Multi-industry

Successful cost and value engineering with Teamcenter product cost

management

Business challenges

• Provide outstanding customer value at

best cost to maintain competitiveness and

profitability of products and solutions

• Make appropriate design decisions early

with focus on both value and cost

• Leverage the full performance potential of

the supply chain

Main Customer benefits• TcPCM core of global CVE ecosystem

• Transparent decision basis for target

costing & target pricing

• Realized fact-based negotiation results

• Support annual productivity of 3% - 5%

Page 23

Keys to success

• Support cross-functional costing

processes across departments

• Simulate cost of design variants and

alternative production processes

• Standardize costing processes,

calculation methods & standards



Production Cost @ SOP – Planning Profitability

Validation and

simulation of

cost and

profitability

Teamcenter PCM

Teamcenter RA

1 2 3 4 5



Grammer, Germany – Automotive

Automotive interiors manufacturer uses Teamcenter to realize up to

15% cost savings in the quotation phase

Business challenges

• Respond to an increasing number of

quotation requests

• Deal with different global calculation

methods, data and cost models

• Support the internationalization of the

production network and sourcing

initiatives

Main Customer benefits• Realized up to 15% cost savings

• Reduced throughput time by up to 50%

• Increased order probability

• Improved competitive position

Page 25

Keys to success

• Use Teamcenter for product & tool costing

& profitability calculation on one platform

• Increase the accuracy of quotations

• Leverage fast simulations of business case

• Use consistent, current data for calculations




Virtual Product

COSTING TWIN

Virtual Production

COSTING TWIN

EXECUTION

COSTING TWIN



feed back insights to continuously optimize product cost


Virtual Product

COSTING TWIN

Virtual Production

COSTING TWIN

EXECUTION

COSTING TWIN

One integrated Cost Data Model


Downstream

Systems

Teamcenter



This is what you gain

Speed Flexibility Quality Efficiency

reduced time on

product cost &

profitability analysis

Integration into

your IT landscape

(PLM & ERP)

Centralized

database for all

product cost

Increased margin due

to fast and more

accurate cost analysis



Siemens’ integrated product cost management solution

50% shorter time

to quote

More than 300customers across

industries

Up to 15% increased margins

AUTOMOTIVE ELECTRONICS

MACHINERY MEDICAL



Randon selects Siemens optimize costs& streamline process

50% shorter time

to quote

More than 300customers across

industries

Up to 15% increased margins

AUTOMOTIVE ELECTRONICS

MACHINERY MEDICAL

“Product cost management provides a

digital twin of a customer’s product and tool

costs, which enables an accurate

representation of both planned and

simulated costs” Randon Truck Trailer

Press Release 25.09.2018



Teamcenter Product

Cost Management

We connect more users

to the digital Thread:

Cost Engineering

Cost Estimator

Procurement

Controlling

Finance (Cost Planning)

Manufacturing Planer



Realize the Digital Twin of Cost

Management

PCM MORE THAN EVER REQUIRED

Presenter

Thomas Richter

LCS/ Global / ALM & Product Cost Management

[email protected]

Peter Jockel

LCS/ Global / Product Cost Management

[email protected]

Product Cost Management more than ever required · 2018-11-01 · Product Innovation Platforms MPM...

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