Performance Targets - Cost Reduction

 Performance targets lie at the heart of the CTMS program,
 and are designed to achieve cost reductions for the customer.
 These targets differ from customer to customer.

 By carefully defining the commercial and technical objectives
 of the tool management program, both CTMS and the customer
 gain a clear picture of mutual expectations. The path to success
 runs via a thorough pre-offer evaluation and analysis of the
 customer's tool usage, consumption and cost structure.

 Some typical performance targets are:
 i. Optimized tool and process engineering, such as reduced
 cycle times, better tool life and less down time;
 ii. Cost reduction by improving supply chain management,
 including a reduction in the variety of tools used, better
 availability of tools, lower overheads, improved management
 of tool consumption data
 and reporting, and more efficient procurement and stock control;
 iii. Cost Budget that reflects direct and indirect costs influenced
 by the management of tools in the production;
 iv. Cost per Unit – this provides a fixed cost basis relative to
 units manufactured – the customer is able to have a reliable
 cost structure and avoids surprises.