easyKost as a Smart Costing Solution

Intro !!

Costing stratégioque pour entreprise

existe +++ types de costing 

But de l’article

Cost Structure Vs. Cost Drivers

The notion of Should Cost (Analytical Costing) allow to define the cost structure. The classic approaches of Should Cost make it possible to estimate the costs of a product by reconstructing and explaining its detailed cost structure. This is broken down into the following parameters:

• Bill of material: cost of raw materials and components, including recycling and scrap costs
• Added value: labor costs, machine costs…
• Overheads: fixed costs, factory costs…
• Ancillary costs: R&D amortization, packaging, financing, logistics…

The knowledge of the cost structure allow to have a very clear explanation of the various product costs, but it is mainly based on the knowledge of the technical and economical parameters linked to the production process and supplier data, which is complex to maintain over time.

Unlike the cost structure, the cost drivers used in statistical calculation models are defined by being factors that have an impact on the cost of a product or service. It can be a technical characteristic, a function, or a location (weight, length, region, type of surface…).

They can be : 

• Internal: batch size, raw material, factors related to product specification, country of production…
• External: exchange rates, taxes, government policies…
• Quantitative
• Qualitative

This statistical approach is non-explanatory, because the detail of the cost structure is unknown, but the impact of cost drivers on the final price can be modelled. The advantage of this approach is that it is based on simple information known by the company.

easyKost has different main features, such as Costing and Cost Estimation, Should Cost, Reverse Costing, Design to Cost, Savings Generation through the easyKost Cost Control Tower, Cost Engineering… 

The benefits of using easyKost as a costing solution are: 

• It is an intelligent costing solution and it uses smart AI-based technology. Its interface is simple, fast, efficient and easy to use
• It automates 80% of the process (costing of incremental innovation, products…). This allows to focus the work of the teams on more complex figures
• It allows you to calculate in real time and promotes collaborative and multi-business work
• It is easily deployable and allows “democratized” costing: once the model has been calibrated, easyKost can be used by the various employees of a company, without the need for expertise*
• Compared to traditional methods, easyKost is considered disruptive because, in addition to fast and accurate costing, easyKost changes the nature of the customer / costing team relationship, from a transactional relationship to a value-added relationship; this for several reasons: 
  • Acceleration of Business Development: the time saved thanks to Smart Costing is invested in the definition of optimization paths (technical, economic, design-to-cost,…)
  • The dashboards generated by easyKost facilitate the reporting and sharing of information between the different business lines (Costing, Procurement, Innovation and R&D, Sales & Marketing…) concerning the costing of new projects and/or products