Program Overview
This program empowers finance, costing, and product management professionals to develop robust financial models that capture the full economics of a product’s life-cycle — from R&D and design to production and end-of-life. Participants will learn to link engineering BOMs to financial metrics, perform variant-level costing, and integrate operational KPIs with margin analytics. Through real-world examples and Excel-based simulations, the workshop enables teams to move from static budgeting to dynamic decision-making — supporting design-to-cost initiatives, profitability tracking, and scenario-based planning that drive sustainable product value.
Features
- Build cost models that integrate engineering, production, and finance perspectives
- Analyze variant profitability and perform design-to-cost and value engineering assessments
- Apply life-cycle costing (LCC) and total cost of ownership (TCO) frameworks
- Use scenario modelling and sensitivity analysis to support product investment decisions
Target audiences
- Finance Team Leads
- Product Managers
- Project Managers
- Functional Heads
Curriculum
- 6 Sections
- 33 Lessons
- 1 Day
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- Product Life-Cycle Economics & Value Drivers6
- 1.1Stages: Concept → Design → Production → Maturity → Decline
- 1.2Cost accumulation across R&D, prototyping, manufacturing, service
- 1.3Value engineering and target costing
- 1.4NPV, IRR, and payback period across PLC stages
- 1.5Margin sensitivity — design vs. price elasticity
- 1.6Quick diagnostic — Map product portfolio across PLC phases and identify margin dilution points
- Building Product Costing Models7
- 2.1Cost breakdown: Direct materials, conversion cost, logistics, warranty, scrap
- 2.2Fixed vs. variable cost mapping; cost allocation logic (ABC, TDABC)
- 2.3Cost drivers — material inflation, energy, manpower efficiency
- 2.4Activity-based costing (ABC) vs. throughput costing
- 2.5Linking engineering BOMs to financial models
- 2.6Case Example: Automotive OEM’s cost structure optimization for multi-variant product line
- 2.7Exercise: Build a component-level cost model in Excel to calculate product variant cost and contribution margin
- Variant Costing & Profitability Analysis7
- 3.1Variant rationalization & profitability assessment
- 3.2Feature-cost mapping and cannibalization risk
- 3.3Margin optimization through design-to-cost decisions
- 3.4Transfer pricing & make-vs-buy analysis
- 3.5Sensitivity analysis on price-volume-mix
- 3.6Example: CEAT & Maruti — optimizing variant spread to sustain contribution margin
- 3.7Exercise: Assess financial feasibility for a new variant introduction under raw material inflation scenario
- Life-Cycle Costing (LCC) & Total Cost of Ownership (TCO)6
- 4.1Life-cycle costing for capital goods and durable products
- 4.2Total Cost of Ownership (TCO) from manufacturer and customer perspectives
- 4.3Warranty, after-sales, and service cost modeling
- 4.4LCC in ESG context — circularity, recyclability, energy efficiency
- 4.5Case Example: Tyre life-cycle cost analysis incorporating retreadability & fuel economy
- 4.6Exercise: Compute LCC for two tyre variants based on durability and retread cycles
- Dynamic Financial Modelling & Decision Support5
- 5.1Scenario and sensitivity analysis in Excel / Power BI
- 5.2What-if modeling: volume ramp-up, RM cost fluctuation, localization
- 5.3Linking operational KPIs (OEE, yield) to financial outcomes
- 5.4Dashboards for cost visualization and decision-making
- 5.5Exercise: Build a scenario-based profitability dashboard for a new product line using Excel
- Action Planning & Capability Roadmap2
Instructor
