Target Management

You can comprehensively issue target costing methods in FACTON EPC SC.

The calculated values, e.g. from Benchmark calculations, are immediately taken as target prices to be compared with the calculated actual costs. Alternatively, you can define the target prices directly at each costing schema level.

In FACTON, you can specify the target costs for Sales Prices (Target SP), for Production Costs (Target ProdC) or at individual elements. This way, you may check if the development is still within target costing range.

Tracking the target costs creates transparency and highlights remaining target cost gaps. helps you achieve your defined goals.

Target Costing in FACTON:

  • Enter target costs at calculation level or at individual embedded elements
  • Enter target costs for sales prices, prime costs and production costs
  • Automatically analyze deviations between current and target costs
    (absolute and percentage)
  • Graphically display the target achievement status

Based on the created should cost calculation, you can enter target costs in the following views:

Structure view »Production Cost« view schema
»Target Management« view schema
Key Figures view »Target Management« view schema
Note

Target costs you enter in a view schema are automatically assumed in the corresponding view schemes.

Toggle View Schemes

Toggle View Schema

  • You are in the Details, Structure, Key Figures, or Used Objects view.
  1. Click in the view schema combobox to the top right of a view.

    2. All view schemes for the selected view are shown.

  2. Click on the desired view schema.

    3. This switches the view schema.

    Alternative: Click on one of the icons right next to the combobox to activate the respective view schema.

»Production Cost« view schema

The »Production Costs« view schema keeps an overview on your production costs and all costs related to it. Here you can enter the Target Production Costs alongside your BoM. You can also enter the target production costs which create a graphical view (Target Achievement Indicator) of the Target Status Production Cost (Target Achievement Indicator).

Additionally, you can add an Open Issue Description to your target costs in the current view.

Further Information Add Open Issue Description

»Target Management« view schema

The »Target Management« view schema provides an overview of the production costs alongside your BoM.

You can also enter the Target Production Cost, which creates a graphical view (Target Achievement Indicator) of the Target Status Production Cost (Target Achievement Indicator). The absolute and percentaged Deltas Between Production Cost and Target Production Costare calculated, as well.

»Target Management« view schema

In the »Target Management« view schema of the Key Figures view, you can enter the current purchase price as well as the target costs for Sales Prices (Target SP). You can analyze the effects of changes in the percentages via the target profit rates on raw materials, purchased materials and manufacturing.

Show and Hide Key Figures view

  1. In the ribbon, click on the View tab.
  2. Activate or deactivate the »Key Figures« checkbox in the Show/Hide group to show or hide the Key Figures view.

    Alternative:

    CTRL + 1

Enter the Current Purchase Price and Target Sales Price to automatically calculate the following values:

  • (Absolute and %) Delta Current Purchase Price To Target Sales Price
  • Delta Imputed Sales Price To Target Sales Price
  • Actual Profit and Actual Profit Rate
  • Target Prime Cost II
  • (Absolute and %) Delta Prime Cost II To Target Prime Cost II

Pinned Costs

Key Figures view Description Where the values come from:
Pin Imp SP The pinned imputed sales price equals the determined imputed sales price of the should cost calculation. They derive from the cost summary. You can find the entire summary in the Details ► Cost Summary view schema (combobox).
Pinned PrmCost II The pinned prime costs II equal the determined prime costs II of the should cost calculation.
Pinned ProdC The pinned production posts equal the determined production costs of the should cost calculation.

In case you want to change the pinned costs for simulation or analyzing purposes, you can override the respective values with F12.

Select the value of the pinned imputed sales price and press F12, if you wish to enter a lower value than determined.

FACTON automatically calculates the differences between the imputed sales price and the pinned imputed sales price, and displays them as absolute and percentaged values.

Target Achievement Indicator

The target achievement indicator provides you with a quick overview on your target achievement. The higher the delta between target production cost and production cost, the more target achievement Indicators are shown.

The Master Data Administrator role enables you to check the configured value rules of the target achievement indicators.

Example:

Cost Gaps and Target Cost Achievement Measures

By comparing the target costs with the calculated costs, the cost gaps (deltas) are determined. On the basis of these deltas, you can take cost-cutting measures.

What measures can be planned and executed so that the individual BoM elements achieve their target costs?

Further Information Measure Management