Profit Enhancement from Target Costing

Post date: Mar 12, 2013 9:25:32 AM

PROBLEM: Loss of market share and erosion of margins from low cost imports damaging profitability of long established French manufacturer of electrical fittings

SOLUTION: Business Excellence worked with the client to focus the organisation on meeting target profit margins by redesigning existing product lines and leveraging the knowledge to develop next generation products. The process involved training the Purchasing, Engineering and Manufacturing staff in "Target Costing" and then assisting them in setting up and running their Target Costing process over 3 workshop sessions conducted in French aver  a 4 month period. Training was also provided in Value Engineering, Design for Manufacturing and in applying lean best practice in production operations to meet target costs.

RESULTS: New products developed in France for production in France at market competitive rates meeting corporate profitability targets have transformed defeatism and despair into action-orientated "business excellence".