COST MODELLING
Precision in Pricing, Efficiency in Execution.
Regardless of the size of your operation, or the product or service you provide, understanding your costs and having a viable model is vital.
In Kingston Gorton we believe that an accurate cost model is a primary process for any business. It guides your efforts to manage costs and it feeds the data into your quotation process, and your quotations are the future of your enterprise. As a business grows the model can often be overlooked and become obsolete. We can help you develop an adequate model that best suits your operation.
Cost Drivers
Let's identify your drivers, those factors that influence your costs wherever they are hiding, and they do hide. All stakeholders are required for this.
Information
With the drivers identified, now it's time to gather the information from all sources in the enterprise, even the ones who don't like to share.
Model
Yes, we will use the dreaded Excel to build your model, at least initially. Cost Plus or activity based, we will work with you to find the best and easiest model to apply that provides the answers you need.
Analysis
Once we have a model we think is right, we need to analyse and verify the model. We will test the model with real world examples and work through with your teams to check ease of use and accuracy.
Cost Optimisation
When we know the model works, now it's time to go back and see where we can get cost out of the system. However, care must be taken. Removing a part may reduce the parts cost, but could increase process time.