TOOLS & METHODOLOGY
Our tools and methodologies provide you with support throughout product lifecycle, and throughout your Economic Performance Management process, starting upstream of the project during the design phase and carrying on through to production, without forgetting logistics.
Upon request, we design and develop for you costing modules that match your specific needs.
We can also provide internal support in the form of a Task Force, for example within the framework of economic convergence and transformation programs commissioned by Executive Management. We can bring in a multidisciplinary team made up of senior consultants to work closely alongside your senior executives.
TECHNO-ECONOMIC ANALYSIS USING AN ANALYTICAL COST ESTIMATION TOOL IN BEST PRACTICE CONDITIONS
ImproValue’s Should Cost® approach (trademark registered at the INPI in 2008) allows you to carry out a detailed and analytical estimation of the production costs for the manufacture of a product.
Should Cost® models the manufacturing processes of your products and estimates the optimal production costs associated to the implementation of best practices (voir video).
Should Cost® allows you to obtain detailed understanding of the mechanisms for establishing production costs for a product and to carry out sensitivity studies (location or production volumes, alternative design, alternative processes) to identify the most promising operational levers with which to resolve your issues.
It provides you with the capability of defining the achievable optimal cost and associated hypotheses to reach your target, such as the choice of a process or factory in particular. Furthermore, you have access to detailed costs, whatever their nature. This means that you are able to identify and understand the most structuring drivers in terms of impact, and the ones you should focus on. The analysis sheds light on the choices you can make in terms of design, manufacturing, supply chain, or location.
You benefit from ImproValue’s knowledge base, which is built on over 10 years of experience and know-how across a very wide range of technologies, materials, products, and industry processes:
- Technical databases: raw materials costs, machine operating costs, etc.
- Economic databases: labor costs, energy costs, overheads, etc. by country and by technology
- Proprietary models for direct or indirect cost calculation: equipment, labor, amortization, structure, margin…
MODELING PRODUCTION FACILITIES IN ORDER TO ESTIMATE PRODUCTION COSTS AND CARRY OUT SENSITIVITY STUDIES
This is the techno-economic modeling of production workshops.
The “Virtual Factory” tool aims to identify your product’s production cost and its main cost drivers in order to implement optimization actions.
We select the model of machine that corresponds to your project along with its parameters (investment, capacity, cycle duration, etc.).
We then define the model of the workshop in which the machine is installed and locate it in a factory, which in turn is part of a business structure.
By carrying out sensitivity analyses on the different parameters, we identify for you the optimal conditions that will allow you to carry out production at the best cost.
SYSTEMS ENGINEERING METHOD TO MAP DECISION MAKING DURING PRODUCT DESIGN
Design Logic aims to help you collectively reconstruct the logical approach that led to the design of your current product, to formalize that approach and share it. Practically speaking, we host workshops for you, called Systems Engineering Workshops bringing together the different business lines within your company that participate in putting your products on the market: Innovation R&D, Procurement, Project, Industrial / Manufacturing, Marketing / Product. Together, we formalize the mapping of the decision process behind the design of the current product.
That allows you to highlight the causal links of each decision on the chosen solution and to effectively gauge impact in terms of cost. You can therefore easily identify and challenge the reasons for the highest-impact choices in order to optimize costs (e.g. Only one supplier met the specification but why not modify that specification?).
You can then challenge the technical solution or solutions chosen and find alternatives within the framework of this design to cost project. (Go to design to cost page).
You can also review the original specifications and examine their flexibility within the framework of this design to cost project. (Go to design to cost page).
This broadens the scope of research for potential technical alternatives to optimize your competitiveness.
ANALYSIS AND MEASUREMENT OF YOUR COMPETITORS’ DESIGN CHOICES, POSITIONING, AND PRICING
ImproValue’s approach to competitive analysis allows you to compare products on the base of multiple criteria in order to optimize a product in terms of cost, value, and positioning.
This approach generally draws on a database, which is often lacking in substance or even inexistent, and a product, which is usually physically available.
A reverse cost engineering type analysis is carried out on the product. The technical and economic aspects allow for the analysis of the technical and technological choices made by competitors. The functional aspects allow for greater understanding of the level of specification of the product as well as its positioning.
A comparative industrial analysis allows for reflection on the competitors’ pricing policy.
This methodology provides you with a functional, technical, economic, and value benchmark for your major competitors.
TECHNO-ECONOMIC TRANSPARENCY APPROACH TO OPTIMIZE COST DRIVERS AND FEASIBILITY
The Push-Pull® (trademark registered at the INPI) methodology allows you to involve your suppliers in a cost reduction process, within the framework of an economic transparency workshop.
This Win-Win approach in your fact-based relationship with your supplier, allows you to broaden your scope of research for cost reduction to the part that impacts the process.
This method was developed to create beneficial exchange between the key players in product design and those in process design, in an external procurement context.
Push-Pull® methodology is even more efficient when it is based on cost analysis carried out using the Should Cost® methodology. Effectively, the cost drivers identified during this analysis are linked to production process hypotheses, and thus become optimization levers.
Spec to Should Cost
TECHNO-ECONOMIC MODELING ALLOWING YOU TO ARBITRATE SPECIFICATIONS ACCORDING TO COSTS UPSTREAM OF PROJECTS
The Spec-to-Should Cost® (trademark registered at the INPI) methodology allows the valuation of system or component specifications upstream of a project. The exercise consists in translating the specifications into technical characteristics in order to model the production costs.
This method was developed to bring in systems engineering and cost engineering at an unprecedented stage in order to arbitrate on industrial strategy or design orientation choices by carrying out cost / value arbitration.
The Spec-to-Should Cost® methodology is unique because it allows for the modeling of the full design cycle. It offers the unique benefit of successfully establishing budgets at a very early phase.
On top of our consulting and support services, we and can provide training, firstly to help you understand and use our tools independently, and secondly to increase your teams’ proficiency in economic performance management.
Our training sessions are specifically designed to correspond to your activities and meet your needs.
They are business-oriented and tailored to suit you. They allow you to rapidly embrace our methods and concepts by means of case studies and quizzes.
Our senior experts, who have first-hand knowledge of cost management and purchasing, can carry out training sessions tailored to your needs with your teams or in your offices.
Here are a few examples of the training programs we offer. You can contact us HERE for a personalized response to your request.
A training course to allow you to rapidly embrace our methods and concepts by means of case studies and quizzes.
Mastering the principles of cost accounting
Understanding and setting a cost price
Identifying cost reduction opportunities
Analyzing a supplier cost breakdown
Raising awareness of threshold effects
This training course comprises case studies and quizzes. On completion of this training, participants are able to understand profitability studies and associated drivers, as well as contribute actively to the improvement of the company's financial performance.
Presentation of the principles of management by constraint
Presentation of the notion of value creation
Understanding and evaluating the profitability of an industrial project
Building sensitivity studies in order to aid decision making and manage risk
ECONOMIC AWARENESS FOR MANAGERS
This training course is designed to raise awareness of economic concepts among technical managers and therefore aims to be operational. It is mainly based on the trainer's experience.
Understanding the potential of cost analysis within companies
Defining the organization to be implemented, along with the roles and responsibilities within the company
Organizing steering of economic performance
This training course allows you to rapidly embrace our methods and concepts by means of workshops and case studies.
Knowing and applying the right methods and tools in your approach to developing competitive systems and products
Knowing and identifying cost impacts
Awareness of threshold effects: performance / costs
EVOLUTION OF THE COSTING FUNCTION
A training course that allows you to rapidly embrace our methods and concepts by means of case studies.
Understanding and positioning the costing function as a driver for competitiveness
PUSH-PULL METHOD IN NEGOTIATION
This training course allows you to rapidly embrace our methods and concepts by means of case studies, quizzes, and workshops
Optimizing your procurement / internal stakeholder interface
Providing purchasers with operational levers to maximize cost optimization without penalizing quality and to destabilize an overly organized market
STEERING THE ECONOMIC CONVERGENCE OF A PROJECT
This training course allows you to rapidly embrace our methods and concepts thanks to trainer experience and the case studies reviewed during the course.
Get to know the methods and tools that allow you to measure and optimize the economic performance of a project