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