When considering cost modelers for manufacturing, are you looking for a standalone solution or do you want to integrate value analysis and value engineering capabilities with other systems like SAP, Oracle, QED, to name a few?
Decision-making for purchasing a manufacturing cost modeling solution can vary depending on a number of variables, and deciding whether a standalone cost modeler or integrated cost modeler is best typically involves considering the following pros and cons for each:
Standalone manufacturing cost modelers provide many benefits and can be designed specifically for cost modeling in particular manufacturing environments. Manufacturing cost modelers are typically used to estimate the costs of manufacturing a product, including the costs of materials, labor, and overhead. These cost models can be used to optimize production processes and improve equipment manufacturer bottom-line profitability.
Integrated manufacturing cost modelers, on the other hand, are cost modelers integrated into a larger system, such as an ERP (enterprise resource planning) system or a PLM (product lifecycle management) system. This type of cost modeler is typically used to optimize production processes and improve bottom-line profitability, but it also provides additional functionality, such as the ability to track production, inventory, and supply chain management.
Below are some features and benefits of standalone electronics manufacturing cost modelers that make them better than integrated manufacturing cost modelers:
Standalone manufacturing cost modelers are often less expensive than integrated systems, and may be more popular to managers and executives across functional groups tasked with profitability tied to outsourcing program financial performance targets.
Whether software-based or workbook solutions, standalone manufacturing cost modelers are typically easy to use and require minimal training, making them accessible to a wide range of users.
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Standalone electronics manufacturing cost modelers are typically more specialized than integrated systems, which can make them more effective for cost modeling in specific manufacturing environments. For example, standalone cost modelers that are designed for MedTech electronics, automotive electronics, industrial electronics and robotics automation, aerospace or the energy sector and mining equipment industries may include features and calculations that are specific to those industries. Further specialization can be whether or not programs being considered under value analysis and value engineering are ‘make or buy’ programs (outsourced, or built in-house).
Standalone electronics manufacturing cost modelers are often more flexible than integrated systems, as they are not tied to a specific ERP or PLM system. This means that they can be used with a variety of different systems and can be adapted to the specific needs of the organization.
Standalone electronics product modelers are usually less expensive than integrated systems, and while often used by large enterprise manufacturers, standalone may also be more accessible to small and medium-sized product manufacturing companies. This can be especially beneficial for VC portfolio startup hardware companies and manufacturers that have a limited budget for software.
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