Scenario analysis and calculation of future manufacturing costs
Our client in the watch industry has set itself the goal of equipping some of its watch models with a newly developed manufacture movement. For this purpose, various scenarios were jointly defined (purchase, in-house production and mixed variants), the future manufacturing costs including cost effects on the existing movements were derived and an assessment was made from a strategic point of view.
- Development of different scenarios and scenario analysis
- Calculation of manufacturing costs (purchase costs, production costs, investments, etc.) incl. economies of scale with different quantity structures
- Calculation of costs during production ramp-up
- Strategic assessment of the scenarios incl. utility analysis
- Risk assessment for industrialisation and regarding framework agreements with movement suppliers
Helbling's quantitative and strategic assessment of the scenarios formed the basis for a management decision on the preferred scenario and how to proceed.