Cost management software

Cost management software is designed to provide a common platform for calculating product and tool costs, carbon footprint and project profitability early in the development process. Our solution, Teamcenter product cost management, enables organizations to determine the interactions between components, tools and profitability.

Based on a bottom-up build of cost and carbon footprint, our solution allows you to understand what a product or tool should cost to make or buy. It translates the real-world production process into a value stream model, allowing you to pinpoint different steps of the procurement and production process to identify cost and carbon footprint savings opportunities at each level. With Teamcenter product cost management, you can calculate complex assemblies and versions quickly and accurately, and simulate technical and business what-if scenarios.

With project profitability, an essential decision-making aid, you can calculate multiple key performance indicators (KPIs), such as net present value, amortization period and cash flows, to view a wide range of perspectives and identify how these KPIs develop over time. This functionality allows managers to assess threats and opportunities in today’s increasingly volatile market environment and recognize which investments are profitable early in the process.

Teamcenter product cost management provides optimum support for cost engineering, procurement, finance and sales with the unique approach of merging calculation, planning and future forecasts on an integrated platform.

Adopting a cost management solution can help your organization enhance financial efficiency, improve decision-making and support long-term sustainability goals. Leveraging a cost management solution can help you in the following ways:

• Face rising costs and competition: Create detailed estimates to identify savings before design begins, when you can have the greatest effect on cost and carbon footprint.
• Gain a detailed understanding of cost and carbon footprint structures: Understand the impact of cost and carbon footprint structures across different stages of the supply chain.
• Leverage traceability and actionable insights: Utilize analytics and reporting features to perform flexible what-if analyses to drive cost and carbon footprint optimization along multiple dimensions. Conduct various iterations to identify and simulate different measures by comparing versions and statuses. For example, you can determine the benefits of replacing a component, switching to a different manufacturing plant, choosing another mode of transportation or using a different machine or production line.
• Identify savings opportunities: Identify areas to reduce costs and carbon footprint such as design flaws, inefficient manufacturing processes or overpriced suppliers.
• Automate manual processes: Rapidly consolidate costing data, including cost and investment planning and sales forecasting. Free up employees to focus on more strategic activities and minimize the risk of human error.
• Facilitate cross-departmental collaboration: Accelerate cross-functional processes between cost engineering, purchasing, supply chain, sales and management. Ensure that all stakeholders use the same basis for decision-making.
• Generate cloud-driven calculations: Use the cloud to rapidly calculate and reduce your product costs and carbon footprint with Teamcenter X product cost management. We manage all the operations and maintenance, including updates. Reduce the cost of ownership and get the highest standards for privacy and data security.

Our cost management solution enables data exchange with customer-specific applications such as PLM, enterprise resource planning (ERP), product data management (PDM), CAD systems and Excel® spreadsheets. External cost and carbon footprint benchmark data are optimally integrated into the software and always available to users. Furthermore, our solution provides data exchange capabilities with Siemens Digital Industries Software solutions like Teamcenter, Digital Logistics and Supplyframe — empowering organizations to leverage cost and carbon footprint data more easily and make the right decisions in the early stages of product development.

Our cost management solution, Teamcenter product cost management, is designed to help organizations make trade-offs between driving down carbon emissions, reducing product costs and addressing customer value demands. It supports product sustainability by providing tools and insights that enable you to make more sustainable choices during the product development process. With our solution, you can compare various design, material, manufacturing and supplier choices to make informed decisions that balance cost with sustainability goals.

The Teamcenter Carbon Footprint Calculator software, which is part of the Teamcenter product cost management solution, allows you to measure, simulate, reduce and track their product carbon footprint early in the development phase. It collects data on all emissions related to direct costs (raw material, semi-finished parts, machine type, energy type, tools and devices), including upstream activities for purchased parts, energy consumption, transportation and waste, as well as emissions related to indirect costs, such as plant overhead and transportation. It factors in emissions from downstream activities, such as recycling and disposal, providing you with a holistic understanding of your product emissions. Our software can support your eco-design strategies by enabling you to efficiently use materials in production through better product design or optimized manufacturing processes to avoid production waste.

Our cost management software solution can increase your company's profitability by enabling more accurate cost analysis, optimizing product design and supporting better decision-making early in the product lifecycle. Using our integrated cost-management approach can help your organization move from best-guess calculation to a methodical and sound assessment that is built on transparency and flexibility. This assessment provides the agility you need to compete profitably in a rapidly changing business environment.

Below are some of the average reductions in time, cost and carbon emissions achieved by our customers:

• 40-50% time saving due to process optimization: Streamline business processes across sites, including a global costing and CO2e emission process, leading to more projects processed in target costing and reduction of quotation preparation time.
• 40-50% cost savings for new products due to cost transparency: Make reliable early statements about costs through what-if simulations for future products, leading to a better understanding of how changes to cost drivers (materials, labor and machines) affect costs.
• 8-18% cost savings for purchased parts due to cost transparency: Validate supplier cost through reliable best practice calculations based on valid benchmark data supporting fact-based negotiations.
• 10-30% carbon footprint reduction due to carbon footprint data transparency: Show the impact on cost and CO2e emissions through optimization of design, material or location. Use a higher mix of green electricity to support green design and circular economy.