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Working with Cleansheet Solution™

Regardless of the products they make, companies in almost any industry can benefit from applying design to value (DtV) and target costing in their business. With the aim of achieving an optimal cost-benefit ratio, DtV increases customer value while helping cut time to market – in some cases, by up to 50 percent. Companies are also able to dramatically reduce the cost of building products by pursuing a Cleansheet cost engineering methodology in their development planning. McKinsey & Company's Cleansheet Solution™ makes it easier for companies to establish cost transparency, analyze the cost drivers, calculate the target cost, and reap the benefits of DtV.

Powerful and complete infrastructure

One major obstacle companies face in applying cleansheet target costing consistently is a lack of infrastructure. McKinsey's Cleansheet Solution™ software tool can fill this gap. The core element of the tool's infrastructure is a standardized activity-based costing application linked to repositories of cost data and supporting applications, which assist users in performing subtasks that can simplify should costing calculations. The Cleansheet Solution™ tool is an Access application with unlimited run time, which functions both on- and offline. For working offline and capturing company-specific data, users can create a local database.

Integrated up-to-date database

Cleansheet Solution™ contains McKinsey's regularly updated cost database for materials, equipment, and labor. The database leverages our insights into different industries and the knowledge of distinctive institutions, such as the global McKinsey Sourcing Centers, to provide the information required for calculating a wide range of Cleansheets. Of course, companies can add or change data on their own without McKinsey's involvement or having to share proprietary information and can also decide whether to use the offered updates.

Elements of Cleansheet Solution™ infrastructure

User-friendly interface

The user interface optimally supports product cost calculations by providing direct access to the intuitively designed menu functions. As a result, compiling a Cleansheet requires just six steps (1. define project, 2. connect databases, 3. define manufacturing scenario, 4. define company overhead structure, 5. enter bill-of-material and manufacturing process, 6. calculate, analyze, refine, and use results). The user can start at a higher level with the provided default parameters and continue to detail the Cleansheet along both the manufacturing process and scenario.

Multiple support models

Our Cleansheet Solution™ application is the standard tool used by all consultants and experts at McKinsey for product cost calculation and sourcing optimization. This tool is now being offered to clients, along with four levels of McKinsey support:

  • McKinsey purchasing or product development engagement, using Cleansheet target costing as a core lever to reduce cost
  • Full-scale subscription, including application implementation, training for company users, hotline support, and expert-on-call support
  • Service line support to provide McKinsey DtV expertise as needed
  • License and hotline only.

A broad offering of training and development programs related to the application is also available.

Part of an integrated offering

Companies can take advantage of our software application in several ways – from simply licensing and using it in their product costing group to fully embedding it within a product development or purchasing transformation. Whatever route is chosen, successful product costing requires an extensive integration with engineering and sourcing functions as well as in-depth knowledge of product structures, manufacturing processes, and technologies.

Consequently, our offering goes beyond the software application itself to include introductory training, hotline access to DtV experts, regular updates to the underlying template and cost databases, and access to the McKinsey Operations Extranet. Depending on the support model selected, we also offer expert workshops to address complex Cleansheets, improve the approach to product costing with the application, or provide outside perspectives on cost and value opportunities for specific products for which Cleansheets have been created.