FUNCTIONAL REQUIREMENTS AND DESIGN STEPS FOR A KEY METRIC SYSTEM TO PLAN RAMP-UP COSTS

AbstractThe successful execution of ramp-ups is imperative for the financial performance of companies. In 2004, almost 60 per cent of all ramp-ups missed their economic targets. Currently, ramp-up costs are often insufficiently planned and controlled. This leads back to the fact that their drivers are opaque, and that methods and/or instruments supporting the planning and controlling of ramp-up costs are entirely missing. This contribution presents the requirements for a key metric system to improve the planning and control of ramp-up costs. Furthermore, we systematically demonstrate how this metric system can be built up by following a four step approach. Finally, also the benefits of using the key metric system are investigated.