Optimize product costs
Calculations, methods, measures
In a glance
How can we avoid cost increases in the product life cycle?
– A common challenge in global competition
The Challenge
Rising supplier prices due to bottlenecks in recent years, combined with the need for marketable prices, are putting many companies under pressure. At the same time, cross-functional measures must be implemented to achieve lasting optimizations.
How does T60 help?
T60 develops negotiation strategies, strengthens sourcing and qualification, and uncovers innovative potential throughout the life cycle. We support cross-departmental optimizations from development to implementation. With our partner 4cost, we offer precise value analyses and calculations for informed decisions.
Our approach
The T60 process model focuses on practical, achievable goals that are defined in clear work packages. We develop tailor-made solutions in close cooperation with product development, procurement, controlling, and production.
Our methods include:
Cost estimates/scenarios for budgets and feasibility – “should costing,” prediction
Cost analyses – variant and bottom-up calculations, from individual parts to complex systems
Value analyses – identification of cost drivers and potential, such as design-to-cost
Sustainability – evaluation of aspects such as carbon footprint for future-oriented decisions
We provide support in price negotiations, make-or-buy decisions, purchasing strategies, and the optimization of supplier processes. Cross-functional workshops create clear responsibilities and priorities for fast and sustainable results.
Most notable results
Transparent calculation and methodology
- Precise should-costing for budgets and decisions
- Top-down and bottom-up calculations for development and product maintenance
- Design-to-cost, target costing, and total cost of ownership
- Sustainability assessments
Effective cross-functional collaboration
- Involvement of internal experts such as R&D, purchasing, and controlling
- Support from T60 and 4cost for methods and content
- Collaboration with external partners such as suppliers and service providers
- Systems engineering for holistic approaches
Measurable benefits for the company
- Cost reduction measures
- Purchasing negotiations
- Evaluation of manufacturing scenarios
- Also applicable to services and software costs
- Calculation scenarios for different countries and plants under TCO, including customs duties
Achieve cost efficiency and sustainability
