Explain the theory for cost calculation.
This training is designed to help participants understand how to calculate the costs of products and parts (estimation methods) through exercises using Excel. The program consists of two parts: an introduction to the theory of cost calculation and the use of our company's Excel cost estimation program to determine the man-hours and costs for machined parts and sheet metal parts.
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basic information
Traditionally, there has been a sales-driven mindset that if a certain level of sales is secured, profits can be adequately ensured. However, this mindset has resulted in a lack of profits due to changes in the business environment, such as the rise of Asian countries and soaring raw material costs. This is because many products are not being evaluated for profitability on a per-product basis, leading to an increase in unprofitable products. To secure profits, it has become crucial to focus not on traditional sales-driven approaches, but on accurately capturing the profitability of each product. In this seminar, we will explain how to manage costs to ensure product-specific profitability, which has become even more important than before, and highlight key points for cost improvement to enhance profits. In particular, we will utilize our cost calculation software to introduce case studies and explain the key points for reducing costs related to the processing costs of parts using machinery, thereby promoting understanding.
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Applications/Examples of results
In the cost estimation exercise, we aim to enhance understanding of machining (lathe work and milling) and sheet metal processing (laser processing, NCT press, bending, and welding) based on the drawings.
Company information
We provide practical guidance on achieving target costs in product development, assessing and evaluating purchase prices in procurement, improving costs during the manufacturing stage, and advancing market development, with a focus on the manufacturing industry and enhancing profitability from the perspective of product and component costs. When advancing cost improvement activities for products and components, it is essential to first understand what costs make up the cost of those products or components. Then, we eliminate waste, inefficiency, and inconsistency from the factors that constitute the cost. As a result, cost reductions can be achieved. Our company offers guidance on cost management and provides estimation software for calculating the costs of products and components, aiming to enhance the efficiency of cost analysis.
