Manufacturing companies face many challenges on a daily basis, such as high volatility – whether in relation to customer demands, raw material costs due to disruptions in supply chains caused by geopolitical turmoil, or climate restrictions that affect component and material prices and even their logistics.

All of this means that simply monitoring expenses is far too little.

Yet still many organizations account for their costs on a monthly basis, with very inaccurate attribution to products. Too slow and too general. Such an approach, especially with large volumes, can lead to uncontrolled cost growth in a short period of time and a sharp decline in the profitability of some products.

And that’s why it makes sense to measure TKW, or Technical Manufacturing Cost. Preferably continuously, with accuracy to the production batch, and for serialized production, even to a single piece. This way, not only will nothing surprise us, but we will also be able to dynamically shape our pricing policy, increasing the attractiveness of our offer and building a competitive advantage over rivals.

You will find more in our webinar on TKW and in a series of articles that will introduce this concept. In addition, they will present with examples how to get down to measuring TKW in practice and where to look for optimization.

You are cordially invited