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Cost Modeling Tool

Xavor’s Cost Modeling Tool (CMT) is a lightweight and powerful way of analyzing product costs across the product value chain by involving Engineering, PMO, Purchasing, Finance and Product Managers in the modeling process.

Cost Modeling Tool

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Cost Modeling Tool

Analysis Modes

Xavor’s Cost Modeling Tool (CMT) is a lightweight and powerful way of analyzing product costs across the product value chain by involving Engineering, PMO, Purchasing, Finance and Product Managers in the modeling process. In addition, this robust solution can integrate with your organization’s PLM, PCM, ERP and MRP solution(s) to consolidate data across all BOMs where the part under review is used.

Annual Usage Analysis:

Users can see the proportional usage of a part across multiple assemblies and carry out a what-if analysis to determine the overall impact of the cost reduction project.

New Product Analysis:

Allows users to see the financial outlook of launching a new product after capturing product BOM, costs, sales price and sales forecast parameters.

Replacing Product Analysis:

Provides a way to see the impact of changing an exiting product into a new product. The tool takes into account the possibility of new revenue as well as cost reductions.

Xavor’s CMT allows you to confidently develop cost models knowing that each model shares the same underlying structure and organizational variables. This will allow you to compare one project cost to another without worrying about the accuracy and consistency of underlying financial calculations.

Cost Modeling Tool

Key Features

• What-if cost analysis allows users to evaluate multiple scenarios to see which ones are the most effective to reduce product costs

• Ability to save multiple versions of cost modeling projects. Provides a convenient way to share and review different scenarios

• Organization-wide standard cost parameters are managed through an administrative interface to provide consistency across all models

• Pre-defined list of cost parameters including variable costs, cost of change and overheads. Ensures that all aspects of product cost are covered

• Labor costs and material costs are managed separately to allow for more granular analysis of cost drivers

• Multiple year analysis (up to 10 years) allows you to see the impact of your decision on P&L across the whole lifecycle of your product

• Calculates NPV, IRR, ROE and Payback for cost decisions. The tool takes into account all selected BOMs across the number of years that you select and provides the P&L impact of these decision