Sap Product Lifecycle Costing

DISCOVER
SAP PRODUCT LIFECYCLE COSTING
Alta Via Consulting
Driving Meaningful Change Through Clarity

ALTA VIA CONSULTING, LLC © 2015
Summary
SAP Product Lifecycle Costing (PLC) is SAP’s upcoming solution
enabling you to:
Accelerate time-to-market for New Product Introduction
Reduce lead time from Quotations
Drive Cost Optimization for New and Existing Products

Introduction Video
https://youtu.be/9tPKeaaXmLU

Product Costing Processes are driven by:
“89% of the companies see the strategic impact of cost management, but are not able to close
the gap between their ambitious goals and reality” - Mieschke Hofmann und Partner
The Current Market Reality

Practices of Best in Class Companies
Source: Aberdeen Product Cost Analysis

Product Costing Scenarios

Starting with Design Thinking

Using Customer Workshops

Influenced by 30+ Customers

Key Requirements
Real-TimeOpen
ERP, Excel, PLM
User Experience
Excel-like UI
Flexible
Cost Structure

Demo
Calculations
Import BOM
from ERP
Import BOM
from Excel
Analysis
Simulation
Reporting

 Calculations
Import BOM
from ERP
Import BOM
from Excel
Analysis
Simulation
Reporting

 Calculations
 Import BOM
from ERP
Import BOM
from Excel
Analysis
Simulation
Reporting

 Calculations
 Import BOM
from ERP
 Import BOM
from Excel
Analysis
Simulation
Reporting

 Calculations
 Import BOM
from ERP
 Import BOM
from Excel
 Analysis
Simulation
Reporting
User Interface enables analysis of:
• Fixed / Variable Costs
• Fixed / Variable Quantities
• Price Source
• Costing Sheets
• Cost Component Splits

 Calculations
 Import BOM
from ERP
 Import BOM
from Excel
 Analysis
 Simulation
Reporting
User Interface enables simulations:
• Version Management
• Volume Changes
• Currency Conversions
• New Parts
• New Plant
• Manual Prices
• Make-vs-Buy

 Calculations
 Import BOM
from ERP
 Import BOM
from Excel
 Analysis
 Simulation
 Reporting

Additional Features (to be confirmed)
Planned additional features include:
Custom Fields & Formulas
Customized Layouts
Additional Prices and Price Determination
Status & Version Management
Extensibility & Web Services
Analytics

Extensibility (to be confirmed)
Import
Import Quotation from CRM
Import Quotation from ERP

Export Process
 
Analyze

Import
Export Quotation to CRM
Export Quotation to ERP

Export Process
 
Analyze

Import
Start Workflow
Request Approval

Export Process
 
Analyze

Import
Compare Versions
Analyze Portfolio

Export Process
 
Analyze


Template: Profiled Beam
Profile Type
Length (ft.)
Width (ft.)
Height (ft.)
= Quantity (lbs.)
I – Profile
20
1
1
120
Calculate Apply Cancel


Total Costs Target Costs
User B 10,754 10,000
User C 10,642 10,000
User C 10,221 10,000
User B 10,219 10,000
User B 10,850 10,000
User A 10,891 10,000
User B 10,407 10,000
User B 10,166 10,000
User A 10,981 11,000
User A 10,949 11,000
User A 10,910 11,000
Cost Trends
Documents
Collaboration

Cost Trends
Spatial Analytics
Collaboration

Deployment Options: On-Premise
ECC PLC
HANA
Master Data
BOM + Routing
CAD
BOM
Excel
BOM
API
Lumira
Analysis
Real-Time Ad-Hoc

Deployment Options: Cloud
ECC PLC
HANA
Master Data
BOM + Routing
CAD
BOM
Excel
BOM
API
Lumira
Analysis
Real-Time Ad-Hoc
Firewall

Five Key Ideas
Product Lifecycle Costing (PLC) is SAP’s upcoming solution to:
Accelerate time-to-market for New Product Introduction
Reduce lead time from Quotations
Drive Cost Optimization for New and Existing Products
Easily create Calculations, Simulations, and Versions
Integrate with ERP, PLM, Excel and Business Objects

About Alta Via

Questions
• Now:
• Ask questions now for immediate answers
• Later:
• Julien Delvat
Alta Via Consulting
jdelvat@altavia.com
40
Q&A

Sap Product Lifecycle Costing

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