Product Lifecycle Cost Management (PLCM)

CGN Global's Product Lifecycle Cost Management is a proven Enterprise Cost Management approach for cost control and profit margin improvement. It enables companies to achieve target cost structure by providing a framework to foster internal/external collaboration for opportunity generation and execution in the most efficient manner within agreed-upon schedules. Our PLCM service establishes a division wide cost management program that includes Idea Generation, Idea/Project definition, tracking, LOS reporting and governance. Past programs have identified between 4 - 8% cost reduction opportunities with realized results between 2 - 4 %.

Key benefits from a strategic Product Lifecycle Cost Management approach are:

  • Structured approach to help manage an enterprise cost management process
  • Ensures alignment with corporate strategy and functional areas (Design, Purchasing, Manufacturing and Supply Chain)
  • Helps formalize goals, establish accountability metrics and tracking format to ensure timely completion based on plan
  • Trade-off scenario analysis that links strategy to execution

More than ever, companies must balance cost-cutting with growth. Traditional cost management is effective in a recession but must adapt and evolve to thrive in a growth environment. CGN’s Product Lifecycle Cost Management approach has unique features that drive exceptional value for our clients in the marketplace and provide them with a flexible structure for these unpredictable times. Some of these tools include:

Cost Reduction Tool Box

  • Cost Modeling Capability – Deep understanding of cost modeling tools and techniques
  • Enhanced Analytics – Advanced visualization of engineering and spend data to identify cost reduction opportunities
  • Comprehensive TCO Model – Comprehensive 15 element model
  • Raw material grade rationalization – Approach leverages component design that optimizes cost through better material utilization
  • 7 Step Cost Reduction Methodology – includes Spend Analysis, Idea Generation & Organization, Execution and Feedback
  • Governance Model – Structured approach that manages enterprise cost management process through formalized goals, accountability metrics and tracking formats to ensure timely completion of projects
  • Supply Chain Network Realignment – Unique approach that focuses on family sourcing to optimize design/supply chain efficiencies
  • Integrate and blend with client organization – Customize solutions for client environment