Case Study: Pratt & Whitney Canada achieves more accurate manufacturing costing with 3C Software

Object Technology Opens New Costing Horizons For Pratt & Whitney Canada

Pratt & Whitney Canada, a large aircraft manufacturer with 6,000 employees across five plants, struggled with inaccurate traditional standard costing that buried true manufacturing costs and made it hard to understand profitability by part and process. To solve this, Pratt & Whitney Canada turned to 3C Software and its Impact:3C object-based costing software, including the CostTalk engine, to gain far more detailed and flexible cost visibility.

3C Software implemented an activity-based costing model that tracked costs through actual manufacturing steps, enabling rollups by part, machine, process, and plant. The results were significant: some old standard costs were off by 100% or more, capacity utilization and bottlenecks became visible, and Pratt & Whitney Canada was able to model five of the 12 rollup levels, with additional benefits such as yield calculations and even engine weight tracking.

Pratt & Whitney

Claude Lévesque

Manager Costing Operations