Realization of data driven management

Upgradation of cost Offering

What is the Upgradation of cost Offering ?

Fujitsu's Upgradation of cost Offering is specifically targeted to the process industry.In the process industry, due to changes in the price of imported raw materials and manufacturing conditions such as seasons, the manufacturing instruction does not match the actual results. Therefore, it is necessary to consider the complex production process and industry characteristics of the reverse tree production system.In addition, by calculating highly accurate manufacturing costs and profit/loss, and making further use of the highly accurate data, it is necessary to upgrade data-driven management and business activities.Providing support for data-driven management using customers' cost and profit/loss data.

What are the challenges in data-driven management of cost and profit/loss data in the process industry?

The data-driven management of the process industry is to promote appropriate management decisions and business activities by accurately grasping the actual cost and profit/loss of each product in an uncertain market environment, visualizing the cause of the actual difference and points of improvement, and predicting various changes.

Upgradation of cost Offering can achieve

Providing value through offering tailored to business strategy

Upgradation of cost Offering accurately calculates and provides cost and profit/loss by product in line with the actual conditions of complex manufacturing processes peculiar to the process industry, and realizes "driven management" based on manufacturing cost and profit/loss.

The themes to be addressed at each level of data-driven management using manufacturing cost data are represented in a map format. In the map, the vertical axis indicates the target organizations, and the horizontal axis indicates the level of cost operations. First, the vertical axis is divided into four parts, ・Field division that promote business within the company ・Next, the management and planning divisions that run the business within the company ・Followed by, group management, which manages the business group ・At the top of the list is the provision of market value, though from a slightly different perspective, from within a company, to society and to customer companies for external purposes. Next, on the horizontal axis, there are four levels, starting from level 1 on the left and ending at level 4. ・Level 1 provides actual management of manufacturing costs as well as a forecast variance analysis combined with budgetary control. ・Level 2 refers to the level of understanding costs, profits and losses, and making decisions using simulations. Levels 1 and 2 are viable themes. Level 3 and beyond will be a new area for the future. ・Level 3 consists of shortening the cost/profit management cycle, speed management using simulation forecasts, and formulation of medium to long-term business strategies through portfolio analysis. ・Finally, Level 4 is a level in which management decisions such as market fluctuation forecasts and business strategies against risks are made to contribute to SDGs, which are social issues. For each of these levels and targets on the vertical axis, established theme categories to be addressed. Specifically, from the bottom up, working to improve the efficiency of cost and profit/loss calculation at Level 1 and further improve the efficiency of cost simulation at Level 2 as part of our business promotion activities. At Level 3, working on "cost planning" and calculate costs at the time of new product planning, which leads to commercialization. At the last level 4. This is an approach to "life cycle cost," and estimating the cost from the R & D stage to the product EOL and evaluate the business. The field divisions thus move from business promotion efficiency to cost planning and life-cycle cost sophistication. Next is the sophistication of management and planning departments. At level 1, working to improve the efficiency of cost and profit/loss calculations as well as at the field level, and at level 2, working to support decision-making through simulations. At Level 3, making management decisions on market fluctuations based on simulation forecasts utilizing cost and profit/loss data. At Level 4, management decisions will be made using more sophisticated data such as AI and variable factors. As for group management, which is at a higher level, the concept of raising the level of sophistication is the same as that of the previous management and planning divisions. However, since it is necessary to make decisions on a wider range of issues, upgrading the efficiency of our medium to long-term business strategies, including simulation forecasts and portfolio analysis. Finally, in terms of providing market value, have adopted a sales price strategy from the perspective of cost and profit/loss. Specifically, starting from Level 2 and set the appropriate price for market needs for high value-added products, At Level 3, offering environmentally friendly products that meet social needs and set prices, At Level 4, providing SDGs products to address social issues, set variable prices, and raise the level. Strategically respond to selling prices to the market by using cost and profit/loss data and considering and predicting market fluctuations. Currently, the PDCA operation is based on the analysis of the forecast variance from the level 1 budget. Decision support using Level 2 simulation has been completed. Continue to raise the level beyond Level 3 to support the upgrading of data-driven management using customers' cost and profit/loss data.
Main DX themes and usage scene level MAP

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Introduction of Fujitsu Application for SAP® Solutions Actual Costs Template (2 min)

Detailed actual cost templates can be utilized to understand fluctuations in raw material prices and manufacturing results that do not follow the instructions.

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Cost / Profit and loss management solutions
Fujitsu Application for SAP® Solutions Actual Costs Template

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