Target Management

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

On the one hand, calculated values such as those derived from a Benchmark calculation can be directly transferred as target prices and compared against the currently calculated actual costs. Alternatively, you can define the target prices directly at each costing scheme level.

n 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. FACTON helps you achieve the defined targets.

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 scheme
"Target Management" view scheme
Key Figures view "Target Management" view scheme
Note

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

Toggle View Schemes

Toggle View scheme

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

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

  2. Click on the desired view scheme.

    3. This switches the view scheme.

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

"Production Cost" view scheme

The "Production Costs" view scheme 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 scheme

The "Target Management" view scheme 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 Cost are calculated, as well.

"Target Management" view scheme

In the "Target Management" view scheme 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 or hide the Key FiguresLifetime Details view

  1. In the ribbon, click on the View tab.
  2. Activate or deactivate the "Key Figures""Lifetime Details" checkbox in the Show/Hide group to show and hide the Key FiguresLifetime Details 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 scheme (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 visual presentation and values for the target achievement indicator are defined in the master data. With the role Master Data Administrator, you can view the configured selection lists and associated global value rules for the target achievement indicators.

Example:

 

Further Information Manage Selection Lists and Manage Global Properties

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