Cost calculations conflict.
Finance and engineering use different volumes, rates or cost baselines. There is no shared basis.
Establish the cost baselineProduct Costing · Controlling · FACTON
Product costs.
Decision-ready.
A cost calculation becomes valuable when it provides a sound basis for a decision.
I help costing and controlling teams in discrete manufacturing build reliable cost models, processes and cost-based pricing arguments.
Gunnar Schlüter Senior Product Costing & Controlling Consultant
Decision model01 / 03
Understand costs.
Evaluate your options.
Evaluate your options.
01Bill of materialsMaterials & purchased parts
02RoutingProcesses & times
03VolumeQuantities & utilisation
04RatesResources & costs
02 / 03Transparent cost model
Assumptions · Drivers · Sensitivities
03 / 03A well-founded decision
PricingMake-or-BuyPlanning
A shared basis for finance, engineering and management.
Manufacturing & automotiveManufacturing controlling at Vibracoustic, 1999–2008
6 years at FACTONSenior Consultant · 2009–2014
Dipl.-Wirtschaftsing. (FH)Business administration & mechanical engineering
01 / Starting point
The figures are there.
The explanation is missing.
Start with a specific business question and the decision that needs to be made.
A price negotiation is coming up.
Costs have changed, but the cost breakdown does not yet explain which drivers support the proposed price adjustment.
Build the cost-based argumentFACTON is not delivering enough value yet.
The system is in place, but data, processes, costing logic or user knowledge prevent consistently usable results.
Define the stabilisation scopeA decision cannot wait.
Make-or-buy, a new location or a quotation needs a verifiable decision model rather than another isolated spreadsheet.
Structure the decision model02 / Services
A clearly scoped workstream.
A usable result.
Scope, data and deliverables are agreed before work starts. Support is tailored to the business question and the existing project.
For a specific bottleneck
Product Costing
Rapid Support
A specialist assignment with a defined scope and duration within an ongoing CFO, controlling or pricing engagement.
Possible deliverables
- A plausibility-checked cost model
- Prioritised data and process gaps
- A cost breakdown or action plan
Cost Transparency Sprint
Bring cost baselines, assumptions and responsibilities together. Explain variances where they arise.
Deliverable focusCost structure, driver overview and prioritised gaps
Assess cost transparency needsFACTON Stabilization Support
Distinguish data, costing logic, process and usage issues, then prioritise the work.
Deliverable focusStabilisation plan, process clarification and knowledge transfer
Assess FACTON needsPricing & Cost Argumentation
Present cost developments and commercial assumptions so that the pricing argument is technically sound and easy to follow.
Deliverable focusCost breakdown, driver analysis and argument structure
Define the pricing questionDecision Models & Planning
Connect should costing, target costing, make-or-buy and multi-year planning through consistent volume, cost and investment assumptions.
Deliverable focusScenario comparison, sensitivities and documented assumptions
Assess the decision support needed03 / Product Costing + Pricing
Same price.
Different cost dynamics.
A change in material prices has a different effect from a drop in volume. Understanding the driver makes it possible to discuss the right response.
Baseline
€/unitMaterials€42.00
Variable production€26.00
Fixed cost allocation€12.00
- Model cost / unit
- €80.00
- Selling price / unit
- €100.00
- Model margin
- 20.0 %
Decision question
Which assumptions must finance and engineering confirm before this calculation can support a pricing or investment decision?
Illustrative figures, not project results or claimed savings. Model margin = (price − model cost) / price. Fixed costs: €120,000 per period; €12/unit at 10,000 units and €24/unit at 5,000 units. Product mix, capacity and other drivers remain unchanged in this example.
01Make assumptions explicit
What is known, estimated or still to be validated?
02Explain the drivers
Which change affects which cost item?
03Evaluate the options
Which option holds up under which conditions?
04 / FACTON expertise
Bring systems, processes
and cost models
together.
My FACTON experience combines process consulting, requirements analysis, implementation and training. What matters is whether people understand the costing logic and can use it in their daily work.
Senior Consultant at FACTON GmbHJanuary 2009 – December 2014
Independent consulting. We clarify the current software version, technical responsibilities and project scope in our discussion.
Implementation & Requirements
Define business requirements, process interfaces and costing logic, then translate them into implementation tasks.
Stabilisation & Optimisation
Identify data and process issues, prioritise their causes and develop an actionable plan.
Training & Knowledge Transfer
Support users, partners and teams with clear workflows and documented business logic.
05 / Approach
From the question
to a usable result.
Every workstream needs a clear decision, verifiable data and an accountable point of contact.
- 01
Define the assignment
Agree the decision, stakeholders, timeframe and expected deliverable.
Output: agreed scope - 02
Review the data
Make cost baselines, sources, assumptions and data gaps transparent.
Output: a reliable working basis - 03
Develop the logic
Review the cost model, drivers and scenarios with the responsible subject-matter experts.
Output: verifiable decision logic - 04
Hand over the result
Document the model, findings and next steps so the team can continue the work.
Output: model & recommended action
Gunnar SchlüterDipl.-Wirtschaftsing. (FH)
06 / Professional background
Manufacturing experience.
Technical depth.
Practical implementation.
I know product costing from operational controlling and enterprise software consulting, at the interface between finance, engineering and IT.
1999–2008
Operational Controlling · Vibracoustic
Product costing, budgets and forecasts, investment appraisal, make-or-buy and support for price negotiations. Subsequently, plant controlling in Hungary.
2009–2014
Senior Consultant · FACTON
Process consulting, requirements, implementation and training. Consulting and implementation support in product costing.
Since 2015
Independent Consulting
Product costing, cost transparency and clearly scoped specialist workstreams for manufacturing and finance questions.
Employment references and selected evidence of past work are available on request.
Personal profile at gunnar-schlueter.de07 / Collaboration
Specialist expertise
within your existing engagement.
When product costing, FACTON or cost-based pricing arguments need greater depth, I take responsibility for the agreed specialist workstream.
For CFOs & Controlling Leads
A clearly defined business assignment with traceable results, agreed assumptions and a structured handover.
For Interim CFOs & Finance Consultants
Additional costing expertise for an ongoing engagement. You retain overall project leadership and the client relationship.
For Interim Providers & FACTON Partners
A defined specialist contribution. Responsibilities, communication and business interfaces are clarified in advance.
08 / Frequently asked questions
Before
we talk.
Is the support only suitable for FACTON users?
No. Cost transparency, pricing logic, make-or-buy and multi-year planning are business questions that can also be addressed using other systems or existing spreadsheet models. FACTON is an additional area of expertise.
What data is needed to get started?
That depends on the decision. Existing cost calculations, bills of materials, routings, volume assumptions, cost rates and a defined cost baseline are often relevant. We discuss data availability in the first meeting; no confidential files are needed for the Mandate Check.
What is the difference between should costing and target costing?
Should costing examines what costs are plausible under transparent technical and economic assumptions. Target costing derives an allowable cost level from the market price and target profit. Shared assumptions and a clear comparison make both perspectives useful for decisions.
How long does a workstream take?
Rapid Support focuses on a specific question and a limited assignment. A reliable timeframe can only be agreed after reviewing scope, data availability and points of contact. The same applies to sprints and FACTON stabilisation.
Can we work together remotely?
Remote collaboration is generally possible. Whether workshops or on-site meetings would be useful depends on the process, data access and teams involved. Discussions can be held in German or English.
Does the Mandate Check guarantee availability or fees?
The check structures your enquiry and suggests a starting point for a business discussion. Availability, scope, timing and fees are then agreed personally.
09 / Product Costing Mandate Check
Which decision
needs a sound basis?
Four short answers help define the starting point. You receive a suggested workstream and a meeting agenda.
No upload. No registration.
Your selections stay on this page. You send any enquiry yourself using your email application.
Your starting point
Clarify first
Agenda for our discussion