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True Product Cost ™

Knowing the True Cost is the Key to Increasing Profits

KNOWING THE TRUE COST IS THE KEY TO INCREASING PROFITS

Efficiency Improvements and Cost-Cutting do not Guarantee Increased Profits. They often require additional investments and shifts in cost structure. 

  • Most manufacturers want to know the actual cost of production. Cost varies with the product mix changes, among other factors such as labor composition, supply chain issues etc.
  • They are challenged with identifying which products and customers are profitable; gaining this critical insight is vital to maximizing profits.

    Traditionally, managers have relied on efficiency improvements and cost-cutting measures like OEE, Lean, and Total Quality Management, hoping these will drive profitability. However, these strategies often demand extra capital or shift direct costs to indirect ones, failing to impact EBIT directly.

 

As a result, manufacturing costs become skewed, leading to costly missteps such as poor pricing decisions and excess inventory.Our system integrates operational and financial accounting data to provide a streamlined profit analysis and cost control solution.

The system improves quote accuracy by properly allocating indirect costs and enabling precise standard cost generation. It forecasts resource needs based on demand, with flexible analysis periods. Track variances between predicted and actual results to refine processes and cost calculations, empowering better decision-making and optimized profits.

 

 

Detailed Profit Analysis and Cost Control Made Simple

Our system helps you analyze your profits and control costs using a simple step-by-step process.
Vayoom corrects cost calculations by adequately distributing the indirect cost to each product. It’s dynamic instead of static, like traditional approaches to allocating indirect cost using direct variables like machine or labor hours. See the chart below:

Discover how Vayoom can unlock new profit opportunities for your business.

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