Better Product Decisions With Platform And Portfolio Insights
To drive profitability, organizations need to be anticipating coming developments on the horizon. Changes to, or advancements in your platform portfolio require an understanding of future revenue streams and what drives cost. PALMA includes integrated profitability management, allowing for data-driven insight for proposed changes. Platform management with PALMA includes managing sales forecasts on products, phase-in/out timings, pricing of products, cost of module variants, investments needed for introducing module variants, and more.
With PALMA decision making will be straightforward with transparency across the organization. You have all the insights within reach to make more informed, better decisions.
Module Variant Cost
The module variant costing tool is part of the profitability suite of tools. It’s used for estimating direct cost of module variants. Here you will see for example the forecasted direct material cost and assembly cost. It also provides an aggregated total cost per sold unit of every module variant. So you can easily identify cost issues while still having time to counter them.
Complexity costing describes the costs that are caused by introducing new products and managing the variety of products produced. Many different products would cause a high cost of complexity, fewer and more similar products a low cost of complexity. The tool helps to understand the economy of scale and how products affect it.
Module System Profitability
In the module system profitability tool, all the cost, revenue and volume projections comes together to form a picture of the future profitability of the module system. And anytime somebody make a change to the module system, the profitability calculations are immediately updated to show the impact
The breakeven plan shows the level of volume at which the costs equal the revenues for a product. The tool can be used to develop alternative investment scenarios.
The profitability reports gives an overview of the profitability for a product portfolio. For business analysis the report provides information about variable, running and introduction costs, investments, revenues and contribution.
Volume is everything in production. Deciding on weather or not to introduce a new module variant requires at least a rough estimate of what investments are needed. In the Module Investment tool all sorts of production investments can be linked to module variants. The tool brings in volume estimates to then provide a good overview of how much each variant must carry.
Simplicity + Variety = Product Portfolio Success
How can you grow our top line with increased market variety and innovation while still controlling our costs?
Organizations typically try two approaches to solve the problem; (1) rationalizing product offerings by cutting off the low volume tail or (2) standardizing parts to leverage buys and reduce build complexity.
Read more in this blog to finding the optimal product and portfolio design.
How Does PALMA Help You?
PALMA will enable operations to plan and source products on modules. This will reduce complexity and help sourcing decisions. planning and assembly sequencing. The order accuracy will increase, costs for inventory and lead-time will decreased and product quality will increase due to valid configurations. Reduced cost for inventory and improved delivery accuracy due to better forecast accuracy due to ability to plan parts/module variants with better predictability
PALMA is a management systems. Business leaders will make better decision with higher revenue and margins due to better transparency and insights in costs, margins and volumes. Increased agility to meet new market requirements and customer needs Information will be shared and transparent end-to-end from market requirements, product planning, design, development, sales configuration, operations and service.
Let's meet to Try PALMA
Book a meeting with us to explore how PALMA fits your needs. A PALMA Demo is 45 min long and we will then go through these agenda points with you:
- Introductions and alignment, 5 min
- The PALMA idea, 5 min
- Use Cases and Capabilities, 10 min
- PALMA demo, 20 min
- Questions and answers, 5 min
The agenda points can be adjusted depending on your specific interest and need.