Managing Product Cost (COGS)
Our commitment to managing to your Cost Of Goods Sold target commences immediately on project start and from our very first creative sketch.
We work with sophisticated cost estimation spreadsheets from initial concept development which are matured through to the point of design transfer and include allowances for country specific labour, capital equipment purchases etc.
Our indicative process evolves as follows:
- Initial BOM and costing estimated from functional model and similar parts, manufacturing and labour estimates
- Costing revised from CDP procurement using typical discount factors based on previous projects
- Costing revised from Alpha procurement using supplier quotes for projected production volumes
- Final BOM and costing for transfer to production is updated with any design change for PPU
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