Transparency and Efficiency in
Target Cost Accounting 

Company:

Willi Elbe Group

Solution:

Custom Calculation Technology

The Challenge

At the main plant in Tamm near Stuttgart, all processes at all locations are controlled and the currently more than 650 employees are coordinated. This is also where the core competence for research and development as well as materials management and sales lies. As a modern supplier to the automotive industry, the Willi Elbe Group focuses not only on quality but also on cost-effectiveness in the underlying processes. In particular, when it comes to the calculation of products and the resulting offers, transparency and precision are required. In the past, the data required for this was compiled in extensive Excel tables and was the basis for target costing and the preparation of offers.

Despite the modular principle, there is a high number of variants in the product portfolio and the creation of calculations became a complex challenge. Several employees were necessary to collect and structure this data. But despite great efforts, the data quality was not always optimal. Decentralized data storage and a lack of transparency made the calculation more difficult and in some cases led to different results. There was also the use of different customer calculation charts, which made standardization difficult. In order to meet the increasing demands of the market and its own quality standards, it was therefore decided to modernize the existing processes.

The Solution

While searching for a suitable solution, the company became aware of nuveon. As a specialist in the analysis, optimization and control of production processes, nuveon has the necessary expertise. The web-based technologies developed by nuveon served as the basis for a new type of product calculation system that can be used device-independent via any web browser. The previously tedious calculation of hourly machine rates should be geared towards the future with the new solution.

"The solution developed by nuveon enables us to make calculations across our entire portfolio and for various customers in a comprehensible, reliable and economically viable manner” says Frank Veigel, Head of Sales Coordination at the Willi Elbe Group, convinced of the results.

The innovative product calculation system is now used across all series and records a wide range of data - from machine data management to work processes. This also includes detailed information on labor costs, set-up times, material, parts lists and the required lot sizes. The linking of work schedules and working hours is also part of the new system.

The high demands on data quality in particular were decisive for the introduction of the nuveon solution. As a reliable partner to the automotive industry, the Willi Elbe Group is required to provide detailed cost analysis as early as the offer phase. Automobile manufacturers often request extensive information about the calculation of hourly machine rates. It is not uncommon for statements down to the energy consumption, the expected maintenance costs or the set cycle times to be provided.

Since the automobile manufacturers have individual requirements for offers and calculations, the simple export is a crucial point. What used to be laborious manual work can now be recorded automatically and transferred to the desired customer format. “Thanks to nuveon, we are able to implement target costing for our products, which in the past would never have been conceivable in terms of quality and speed. That secures decisive competitive advantages for us in this highly competitive market in the long term” emphasizes Frank Veigel.

But the product calculation system developed by nuveon goes one step further: It also enables processes to be simulated. This aspect is particularly important when planning new acquisitions in the machine park or for estimating future costs, e.g. B. with rising electricity and material prices, not to be underestimated. Shift processes and degrees of utilization can also be viewed in simulation games. In this way, the effects of changes to the machine parameters can be determined immediately. This is an important point, especially when calculating the resulting hourly machine rates.

 

Resolution

The web-based product calculation system from nuveon has become a permanent part of the Willi Elbe Group. It is the central basis for a company-wide and cross-location calculation of all products.

“We are more than satisfied with the solution and the work of the nuveon team. We not only benefited from nuveon's extensive experience during implementation and introduction. New ideas and requirements from our company are always implemented quickly and reliably. Ultimately, these points contributed to the success of the new system” Frank Veigel sums up.

The fact that integration with third-party providers is also an important aspect is proven by current plans for coupling the calculation program with the ERP system.

How can we help simplify your calculation processes?