Product and Program Financial Management
Product and Program Financial Management (PFM) is an approach and a set of business processes that help product companies increase product profitability.
Product companies are constantly faced with complex issues, including short product lifecycles, uncertain prices and demand, global supply chains and responsibility for service and end-of-life. Ensuring that products and programs meet and improve upon profit targets in such an environment is at best challenging. Yet without a methodical process for planning, designing and controlling product profitability, product companies run the risk of becoming non-competitive.
Using strategies, roadmaps and processes developed by Zesati, product companies can plan, design and continuously improve product profitability throughout the lifecycle. PFM processes allow product companies evaluate, understand and manage the impact and interaction of different factors (design, materials, manufacturing, supply chain and service) on product and program profitability.
Zesati PFM processes can be used to support
New Product Introduction (NPI)- Engineering Change Management
- Product Lifecycle Cost Mnanagement
- Continuous Improvement
PFM can be used to support
Product Profitability Management
The ability to introduce right products in right markets at the right cost offers a distinct and lasting competitive advantage.
Many of the design, manufacturing and sourcing decisions made during the product design phase impact lifecycle profit (revenues and total lifecycle cost). Consequently, major opportunities exist during the New Product Introduction (NPI) phase to design superior profitability into the product or program.
Product Profitability Management is a methodical process to evaluate and optimize design, manufacturing and sourcing decisions to improve product profitability. The process allows evaluation of alternative product designs, components, manufacturing, sourcing strategies and service costs on overall profitability.
Engineering Change Analysis (ECA)
Product and manufacturing companies can use the Engineering Change Analysis (ECA) application to measure the impact of product and process changes on lifecycle profit.
The ECA process provides an in-depth analysis for the following:
- Where and how the engineering change offers improvement and increase in profitability
- The correct time to implement the change throughout the supply chain to maximize profitability
The ECA process allows engineering, manufacturing and supply chain personnel to perform what-if analysis of changes to products, components, manufacturing and supply chain processes and displays the results in financial terms so that decisions can be compared and optimized.