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Product Cost Management for Energy & Utilities

Product Cost Management for Energy & Utilities

With commodity prices well off their past highs, increasingly stringent governmental regulations and customized user specifications around the globe are affecting the delivery, costing, and quality control processes in the Energy & Utilities industry. Our Digital Innovation Solutions can help deliver a competitive advantage through an effective, sophisticated product cost solution that integrates a world-class PLM program with precise cost management tools.

With commodity prices well off their past highs, increasingly stringent governmental regulations and customized user specifications around the globe are affecting the delivery, costing, and quality control processes in the Energy & Utilities industry. Our Digital Innovation Solutions can help deliver a competitive advantage through an effective, sophisticated product cost solution that integrates a world-class PLM program with precise cost management tools.

Product Cost Management for Energy & Utilities

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Innovation, quality control, and cost management are crucial for success in today’s Energy & Utilities industry. With downward margin pressure, globalization, the increased need for equipment customization, and with market competitiveness at an all-time high, understanding your cost structure regardless of the business model or market segment has never been more important. Tomorrow’s market leaders will require standardized cost methodologies and accurate costing data models to ensure precise estimation and forecasting figures, transparent insight into costing processes, and immediate access to accurate equipment information.

Our integrated and complete product cost management solution combines the power of the leading global Digital Innovation Platform with accurate, yet simplified, product and process cost management tools in one unified system. This provides the opportunity for Energy & Utilities companies to optimize equipment and asset costs in order to maximize margins. The system allows cost engineers to efficiently work within the proper context of the product lifecycle to obtain reliable cost estimates, select and optimize purchase strategies, and confidently assign profitable selling prices.

Product Cost Management for Energy & Utilities

Solution Capabilities

Bill of Materials Management

Manage and model material costs for Energy & Utilities equipment manufacturing within the context of BOM and configuration change management through the direct integration of the PLM system with the cost database.

Design-to-Cost

Represent an entire product or asset price structure and then stress-test it to understand the impact of design or manufacturing-related changes or other identifiable cost drivers.

Profitability Calculation

Accurately and efficiently predict equipment profitability over the entire PLM program to justify future investments and assist in revenue and cash flow forecasting.

Purchase Price Analysis

Evaluate different purchase scenarios by applying cost analysis against the component information stored within your PLM system. Accurately forecast costs  under different scenarios and facilitate cost structure negotiations and value engineering workshops with suppliers.

Quotation Costing

Facilitate and manage “open book” supplier pricing discussions to support stronger negotiating positions with suppliers. Compete more effectively in the margin-compressed Energy & Utilities industry.

Target Costing

Estimate and manage Energy & Utilities equipment development and manufacturing costs from a concept-through-manufacturing lifecycle context. Achieve greater cost confidence to comprehensively plan and execute profitable outputs.

Tool Purchase Price Analysis

Accurately estimate and model the cost of key process technologies and components that contribute to the development, design and manufacturing costs for your Energy & Utilities products.

Tool Quotation Costing

Provide precise tool calculations and transparent cost breakdowns in a short time frame.  Leverage parametric calculations to deliver an optimum balance between accuracy and time-based calculation effort.