Aerospace & Defense
Innovation and collaborative, synchronized program management for new programs
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Accurately estimate the costs of delivering automotive components by analyzing and simulating direct material costs and manufacturing overheads from the bill of materials (BOMs) and bill -of- process (BOPs).
Calculate relevant profitability indicators such as internal rate of return, net present value, and payback periods. Compare automotive parts programs to make the best investment decisions.
Run reliable cost calculations of purchased parts from your downstream suppliers. Conduct cost structure negotiations and value engineering workshops with your suppliers using more accurate cost estimates.
Represent the price structure of automotive parts and systems. Predict the impact of design-related changes on prices quickly. Choose the best manufacturing methods based on cost simulations
Negotiate with OEMs using comprehensive cost reports and dashboards. Have more informed conversations with OEMs and upstream purchasing experts to establish fair prices.
OEMs and Tier 1 suppliers expect price reductions from downstream suppliers as part of their continuous improvement initiatives. In the pursuit of vendor consolidation, automakers are looking for suppliers that can demonstrate capabilities to meet target price estimates and act as true collaborators in helping to reduce program costs. The ability to accurately estimate costs is critical for automotive suppliers to win or lose business.
Siemens PLM Software offers an integrated product cost management solution that combines the power of the world’s leading global PLM platform with sophisticated product cost management tools all in one system. Auto suppliers can implement standardized costing methods and analyze accurate estimates of product costs.
The knowledge of cost drivers and how engineering changes affect estimates are critical in realizing product cost targets. Integration with the PLM platform enables cost engineers to work within the context of the product lifecycle to obtain reliable cost estimates regarding target costs, best-cost-based purchase prices and profitable sales prices.