Festo uses product costing solution for all calculations in the target costing process
3 weeks ago
- last edited
3 weeks ago
Festo uses Teamcenter Product Costing for all calculations in the target costing process by supporting the introduction of new products and then the re-engineering of existing products.
In the daily life of the factory, automation technology performs typical tasks such as gripping, moving and positioning of individual parts, assemblies and complete products. As one of the leading innovators in automation, Festo has set new standards in factory and process automation for many years and offers a broad product and service portfolio ‒ from individual components to complex customer-specific solutions and systems.
Festo focuses on target costing to strengthen market and customer orientation, and the approach is firmly integrated into the development process. Target costing delivers important information in determining product costs derived from market prices and helps to cost-effectively design new products or revise current products. When developing new products or comparing variants, there is seldom any meaningful geometric data available at an early stage, which made a purely parametrically based solution irrelevant for Festo. Since Festo need a robust depth of detail and accurate cost transparency at a very early stage, only bottom-up cost calculation solutions were taken into consideration.
Take 2 minutes to watch how Festo, uses the Teamcenter Product Costing and Teamcenter Tool Costing solutions and achieve a cost reduction in target costing in the middle double-digit percentage range and significantly increase the transparency of the cost trend and the adopted measures. To find out the full story, it's definitely worth taking a few minutes to read the Festo case study.