Technical Manufacturing Cost Analysis (TMC)

Do you manage a manufacturing company and want to reduce costs across multiple operational areas?
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LUQAM’s team of specialists will help you optimize production costs. Technical Manufacturing Cost Analysis (TMC) is a proven method that delivers measurable benefits in cost reduction.

Through detailed verification of production-related expenses and supportive tools such as Value Stream Mapping (VSM), we identify process elements and factors that impact the total cost of manufacturing a product. TMC analysis helps pinpoint key areas for improvement, driving production savings.

LUQAM experts have deep expertise in cost structure analysis, supported by advanced tools that make collaboration truly profitable.

Explore our capabilities

Financial Benefits

TMC analysis with LUQAM results in tangible economic benefits through reduced production costs.

Our consultants perform on-site measurements, apply lean tools (e.g., VSM), and analyze all processes that contribute to the TMC structure.

We focus on:

Material and energy consumption,
Labor costs,
Direct production expenses (e.g., outsourcing, tools, fixtures),
Indirect manufacturing costs,
Comprehensive Cost Optimization in Production.

Comprehensive Analysis and Optimization of Costs in Production Processes

Value Stream Cost Analysis

In the production phase, our experts conduct cost-based value stream mapping, assessing actual operation times vs. planned times, logistics and warehouse flows, processing steps, quality control, and management activities (e.g., planning, accounting).

We visualize not only the flow of time and material – but, more importantly, the money lost at each operation within the production stream.

Current and Future State Mapping

Like traditional VSM, we build a current-state cost map and a future-state map based on projected savings.

The core metric is the potential reduction in TMC and the calculated profit for your organization.

We deliver a comprehensive optimization plan with improvement proposals, cost-saving recommendations, and a roadmap for implementation.

Optimization Project

TMC analysis is ideal for companies looking to understand their current operations beyond basic KPIs like OEE or quality, focusing on cost breakdown.

LUQAM’s strong advantage lies in providing:

Future-state TMC cost modeling,
Clear ROI estimations,
A ready-to-launch cost optimization project.

Simulation-Based TMC Analysis

The Technical Manufacturing Cost (TMC) analysis is a complex process that LUQAM carries out using an advanced simulation environment. By modeling production lines, entire facilities, or individual workstations, it is possible to accurately replicate manufacturing processes.

The simulation software enables precise measurement of machines and operators, allowing for an in-depth analysis. It considers a wide range of costs – from materials and labor to utilities and maintenance.

In addition, the simulation allows for testing alternative production scenarios, helping identify optimal solutions that minimize total costs.

Key Elements of TMC Analysis: