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Mechanical Engineering
Defining the right pricing model
Determination of the correct selling price for each job order.
Finance Transformation
Results
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1
Determination of the industrial hourly cost for each production department.
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2
Implementation of an effective pricing model for each job order, based on the relevant hourly costs.
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3
Continuous monitoring of profitability by job order and comparison with estimates.
Approach
- Identification of medium to long-term objectives.
- Assessment of the AS-IS situation and collection of documentation (analysis, data mining, balance sheets, distinct base, current pricing model).
- Analysis of the management accounts plan for cost certification and inventory of cost elements.
- Identification of productive (and auxiliary) Cost Centers (CdCs).
- Allocation of direct and indirect costs to each productive CdC, and reassignment of auxiliary CdC costs.
- Determination of the industrial hourly cost for each production department, based on machine or site.
- Creation of a preventive job order pricing model, based on the calculated hourly rates.
- Continuous monitoring and refinement of parameters for achieving a consistently accurate measurement.