Product portfolio complexity optimization for a manufacturing equipment producer

JSW reviewed the cost allocation schemes utilized by the client to calculate standard costs for its products. Based on the findings and sales data per product and customer the cost allocation was adjusted to reflect more realistic cost drivers.

Specific attention was taken, to ensure documentation and easy handling of the new system for future adjustments in operations. The product and customer portfolio was systematically reviewed to identify candidates for elimination due to unprofitability or other sales and marketing activities targeted towards improving profitability,