Project Battleship
Manufacturing
Bid Model
KPI's: Contract bid values >£1m
Redevelopment of bid model for international naval technology manufacturer.
Requirement
Clients' products included logistical support systems which it designs, manufactures and supplies to many Navy’s around the world.
The company had an existing quote calculation engine which needed to be updated as the existing model did not contain sufficient detail and also required a significant and time-consuming reconfiguration process between bids.
Solution
Developed an enhanced quotation engine based on a bill of materials, design costs, engineering labour, head office cost absorption, and other expenses. The cost modelling approach uses a variable cost structure: some costs are incurred only once for the entire project, while others scale based on the number of units per ship and the total number of ships.
Once the cost base is established, the model includes options to add various margins and perform currency conversions, providing a customer-facing summary in multiple currencies.
Designed with flexibility in mind, the model ensures consistent formulae, requiring only the assumptions to be updated for each new bid. This approach saves the client time and reduces the risk of errors in bid calculations.