PVM cost break down

Efficient analysis of purchased parts

Our Cost Break Down software allows you to itemize cost structures according to a customer-specific, predefined calculation scheme. The costs of a purchased part are calculated and prices reviewed based on its individual components.

The Cost Break Down software lets you compare and analyze the cost items relating to several purchased parts or suppliers.

All costs attributable to a vendor part are itemized within a hierarchical cost break down structure. Assignment is performed based on similarity in function, main components and essential cost elements. This means that common structural elements such as raw materials, purchased parts, processes, tools and development services can be calculated and analyzed with ease.

HELPFUL SUGGESTIONS TO CUT COSTS

CBD software introduces transparency to your calculations, helps identify optimization potential, and lets you put a number to actual expenditure.

PVM Cost Break Down. Your benefits.

  • Identification of cost-saving potential.
  • Transparency in external and internal product costs thanks to the cost break down.
  • Better understanding of costs.
  • Helpful suggestions to cut costs.
  • Efficient processes in contractual negotiations with suppliers.
  • Improved comparability of offers.
  • A substantially more factual approach to price negotiations.

PVM cost break down. The functions.

Request for quotation

The RFQ is a helpful tool in the process of receiving quotations for assemblies and components as well as in the development of concepts and series. It keeps you up to speed with the costs and the terms of payment or contract.

Price analysis

In turn, analysis of cost break down structures permits price analysis, used to identify the ideal price of the purchased parts. The price analysis considers cash discount rates, discount terms and the ratios applicable to each part. The price analysis report feature performs a series of simulations based on the various data sets. The reports summarize the key data incorporated within the best price analysis.

Benchmark database

The Cost Break Down data is exported to a benchmark database. All buyers are able to source relevant data like personnel costs, machine costs and raw material costs.

Cost estimate

The data contained in the cost break down structure analysis are exported to a benchmark database, ensuring that all buyers can source the relevant data (including personnel costs, machine costs and raw material costs) for use in internal cost estimates.

Reports

A report comparing different CBDs based on the elements contributing to the cost structure. The report is used to display the cost of material, machine hours and labor cost. Its selection features include by country/ facility, interval in time and processing method. It provides a best price analysis and highlights deviations.

PVM Cost Break Down. Opitional Functions.

Supplier portal

You may place any number of requests via the supplier portal. It enables sharing of documents such as specifications, concept sketches and product descriptions, and also includes an automatic status tracking feature. This ensures that you will have all the data you need in the shortest time possible and in a clearly presented and structured form.

Functions

  • Cost break down
  • Cost estimate
  • Pricing analysis
  • Benchmarking database
  • Supplier portal

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Factsheet