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Author's profile photo Ulf Petzel

Designing to cost, and for maximum profitability? SAP Product Lifecycle Costing should get you excited!

When it comes to new product development in the digital age, everyone talks about bringing together mechanics, electronics, and software, in one consistent and complete product structure. But what about the financial aspects of new product development, and especially the costs associated with your new product, whether they are direct materials cost, costs of in-house manufacturing, subcontracting, logistics, third-party licenses, duties, etc…?

On September 23rd 2015, SAP launched a new native SAP HANA based application which bridges this gap, by enabling High Tech & Electronics and other manufacturing companies to calculate product costs and other dimensions in the early stages of their product lifecycle.

Take product structures from your best-of-breed PLM environment, add existing cost information from your SAP ERP environment, on top add cost estimates of your buyers, manufacturing engineers and controllers for parts or manufacturing activities not yet available or that will be applicable only in the future once the product is being produced. Bottom-up cost calculation is done instantaneously by SAP Product Lifecycle Costing. Want to pick another price source to simulate alternative supplier selection or manufacturing alternatives? With one simple click, you are able to assess the cost impact of any change as you make the change, in a simulation version of your costing structure. Want to keep track of the alternative options considered, and analyze them in more detail? Sure, just save them as alternative versions and analyze them leveraging any costing sheet or cost component split defined for your cost breakdown, either embedded in the solution, or real-time leveraging predefined analytical views for consumption in SAP BusinessObjects Analysis, Office edition, or SAP Lumira, as an example.

Interested in more details? Find out more in the introduction video below, or feel free to contact me directly.

To learn how other leading SAP customers are meeting the challenges of competing in a hyper-competitive digital economy by running live, please visit our Extended Supply Chain Resource Center.

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