Analysis of Buy Part Prices

The analysis of buy part prices based upon the real and optimized processes clarifies the cost structure of a buy part and identifies the elements that are responsible for unnecessary part costs. From starting to identify the necessary part requirements up to changing the production technology – focused measures at the supplier or in your company make the analysis of buy part prices a valuable tool for cost reduction. Usage of the results of the analysis of buy part prices for qualified make or buy decisions, considering internal cost structures.

Content/Structure

  • Theoretical and practical training of all participants by using examples from the reality. Explanation of the methodology and the way to realize the project. Target group: employees from purchasing, cost calculation and controlling
  • Definition of products or product families to be analyzed
  • Visualization of production costs of buy parts by evaluation of material costs, wage costs and machine costs. This will be done for every step in the production process
  • Overhead costs can be understood by using either supplier specific information or experience data
  • Ideas for cost reducing changes in design or in the production process will be documented and in negotiations with the supplier defined and fixed in an activity plan
  • Realization of regular meetings with the supplier along the activity plan until all activities are completed

Which additional values will you receive?

Using the U² calculation database, we can determine the cost of your buy parts, manufactured with different production technologies. The technological and process knowledge of various industrial sectors enables us to find working solutions to reduce costs.