Cost Modeling for An Electronic Manufacturing Company to Estimate Accurate Price
Project Duration (Months)
0
M
Commodity Groups
0
Spend (Millions)
0
$
Part Numbers
5000
K
Cost Models
0
Accuracy
0
%
Challenges
Context
Approach
Results
Challenges
- Product classification and categorizations
- Identifying technical cost drivers on 2D drawings and commercial cost drivers on SAP
- Mining of missing data from available resources
- Minimal available technical client resources
Context
- Create a smart estimation eco-system for global supply-chain management with accurate cost models for price prediction based on the analysis of technical and commercial factors
- Create a dashboard for selecting correct cost models for estimating the cost of new parts.
Approach
- Identify technical and commercial sources for data collection
- Extract data using Manual, semi or fully automation using programs and AI based tools
- Classify parts based on type and commonality prior to extraction and normalization
- Perform data consistency/formatting checks, create and test model iterations
- Address all necessary KPIs for price estimation
- Provide training to SMEs and evolve process as necessary to achieve accurate pilot cost models
- Implement changes for Change management
Results
- Improvements to pricing and MOQ considerations
- 50% reduction in quotation time.
- 33% increase in price estimation accuracy.
- VAVE opportunities identified.
