Commodity Prices in India - Cost Masters
Target Price Cost Estimating Service, a division of CostMasters, provides cost engineering services for mid-to-large sized manufacturing organizations worldwide. The service is an ideal solution for companies that do not have either the time or resources to do detailed product cost analysis in-house. we put empathy for your business , fact based approach , data based analysis & measurable results. Based on numerous consulting projects in the field of product cost analysis and optimization, we have developed comprehensive and competent expertise within the following subject areas.
Cost is an important factor for success of almost every business. Objective of TPA is to help you negotiate cost first time right, as you have the maximum negotiating leverage at the start of the contract. Our aim is to determine the most cost-effective and efficient materials and manufacturing processes for a particular part or product.
TPA can also help you in verification of the adequacy of purchase prices by bottom-up analysis of the underlying manufacturing processes and cost structures. Systematic identification, validation, implementation of purchasing potentials & enhancing profits.

Process/ Approach TPA
A very highly Professional and methodical approach is adopted to conclude TPA for your benefit.



Machine Costs
For the calculation the machine hourly rate is allocated by means of the period of use(cycle time) to unit costs.



Should cost models provide insight and direction that can be invaluable when negotiating prices with a supplier. They help purchasing professionals understand what is driving an item’s cost and allows them to explore a variety of scenarios such as how changes in labor and overhead rates or improvements in process efficiency might impact an item’s price. By comparing the model’s output to a quoted price, purchasing can infer profit margins, production efficiency, overhead costs, and other key negotiating elements. It should be in the procurement toolkit of every manufacturer that buys highly engineered and costly items from a range of suppliers

RFQ (Quote) Success Rate
In negotiations, it is normally observed that either in curiosity, to honor a relation or under pressure, you may agree a price , the phenomenon called “The danger of selling at price”. TPA helps you go prepared with data and acts as a traffic light signal, telling you where to stop and say no. If you are not able to detect the bad price part, it will make losses for you
Today, in some organizations, it is mandatory to furnish detailed cost break ups along with the quote. Due to lack of time and focus on main business activities, you are not able to provide and it becomes a reason for not selecting your bid. We can do this for you , as per the guidelines provided by you and as per industry benchmark , in a convincing format , increasing the chances of your bid winning a healthy order and a feeling of trust to your Buyer.

It helps in identification of Cost reduction potentials , design simplification , generation of VA-VE ideas , enhance customer & competition centric new product developments.
- Identify cost reduction Potentials.
- Generate VA/VE ideas for improvement in product & reduce cost.
- Insight of competition cost structures & their impact on customer.
- Aggregate wise detailed analysis to pin point the focus areas.
- Self realization of available options in proprietary spend category .
- Feature wise contribution in the machine cost & customer focused enrichment of product.
- Adopting and incorporating best practices in design upgrades resulting in optimal cost & compressed lead time from design to market.

Cost optimization for product design and engineering, creating value while maintaining capacity and quality (cost-orientated creation of product value).
Bottom-up-validation at an early stage, detailing and the trace of the target performance during the product development process.
Sustainable re-establishment of the competitiveness of serial products that have experienced a market-driven decline in prices and margins.


- Cost Reduction Potentials - Identification & Realization
Dynamic market conditions may force us to re-visit the cost of parts. Low volumes & unpredictable factors during initial development gets stabilized with time , with opportunity for cost reduction . On the contrary process cost drivers like labor wages , electricity charges witness increase. TPA helps you to evaluate all the aspects before approaching suppliers for negotiations. In few instances , the part costs were settled in past and still may have cost reduction potentials , TPA efficiently does this for you.

Comments