Case Study
Cost Tracking, Heavy Equipment Manufacturing
Case Study: Cost Tracking, Heavy Equipment Manufacturing This case study describes how Gagnon Associates helped a client improve the accuracy of its cost-tracking process, thereby protecting critical profit margins on multi-million-dollar pieces of equipment. The Company A global manufacturer of heavy equipment for the mining industry. The Problem Variance by as much as 5 to 7% between predicted and actual cost of a multi- million-dollar piece of equipment. Since the machine build-cycle extends over more than one year, and price commitment to the customer must be made at the start of the build cycle, client’s inability to accurately track and predict actual, final machine cost significantly erodes profit margins on completed equipment. The Approach Company CEO mandates a high-focus, fa