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On Sept 23rd 2015 SAP has launched a new HANA based application, which enables customers to calculate cost and other dimensions in the early stage of their product lifecycle.

At the German launch event at the Apphaus in Heidelberg, Germany customers again underpinned the increasing market forces they have to cope with today. One reason why their is a tremendous interest in the new solution is the ongoing margin pressure which forces them to once again look into all aspects of their future product profitability. A lack of product visibility in the early stage of the product or in quotation processes typically resulted in profitability issues downstream when a particular product is ordered at a certain price. For some manufacturers variances between first cost estimate and cost in production results in tremendous profit losses later on.

In today's world of manufacturing companies product costing for new products is often done by using Microsoft Excel spreadsheets sent around through the whole company not integrated into the companies business processes nor viewed under the aspect of data security and accessibility. Nevertheless we are talking here about highly sensitive data when costing new products which often the future of the companies rely on.

SAP Product Lifecycle Costing is designed  as an end-to-end solution for early engineering, quotation and lifecycle costing. as such it provides a high performance real time calculation engine with a modern dedicated user interface. It offers Excel like configuration and costing spreadsheets and can be personalized easily.  The solution includes:

  • flexible hierarchical costing structures, with native integration to SAP ERP (PLM) data structures or Excel or any other data source
  • a high performance calculation engine -able to cope with large product structures and complex calculation requirements
  • flexible pricing strategies to support make or buy scenarios.
  • an open standard based API interface, a customer add-in frame work, a set of customer fields and formulas to adjust the app quickly
  • what- if-scenarios and analytics to support smart design, production and supply chain or sourcing decisions.
  • standard SAP business application security, locking and versioning

With this broad set of functions, companies are now able to accurately calculate against their target cost, mitigate risks, shorten quotation lifecycle, increase profitability and reduce their time - to - market.

SAP Product Lifecycle Costing is build together with 30 Co-Innovation customers who helped design and shape the solution in a true design thinking experience.

SAP´s approach is to support the design-to-profitability paradigm in the best way possible while giving the engineers the freedom to create new products by not hindering them with premature business process data needs, said Hans Thalbauer, SVP for the Extended Supply Chain, SAP.

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