{"id":1012,"date":"2016-08-11T14:54:48","date_gmt":"2016-08-11T12:54:48","guid":{"rendered":"http:pikon-staging-int.rolfkempf.de\/?p=582"},"modified":"2025-11-21T11:30:16","modified_gmt":"2025-11-21T10:30:16","slug":"profit-margins-erosion","status":"publish","type":"post","link":"https:\/\/www.pikon.com\/en\/blog\/profit-margins-erosion\/","title":{"rendered":"How to prevent profit margins slipping through your fingers"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1012\" class=\"elementor elementor-1012\" data-elementor-settings=\"{&quot;element_pack_global_tooltip_width&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_width_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_width_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_padding&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_padding_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_padding_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true}}\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-45d1f9c4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"45d1f9c4\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6e0795e7\" data-id=\"6e0795e7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-48ab435d elementor-widget elementor-widget-text-editor\" data-id=\"48ab435d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: justify;\">Has your organisation ever won a customer order where everything appears to run smoothly until, suddenly, your project controlling comes with the alarming message that nothing adds up? Especially in the <a href=\"https:\/\/www.pikon.com\/en\/industry\/mechanical-and-plant-engineering\/\" target=\"_blank\" rel=\"noopener\">machinery and equipment industry<\/a>, often producing large custom and complex products, we have seen too many financial leaders worrying about how to prevent their profit margins from slipping away.<\/p><p style=\"text-align: justify;\">For its <a href=\"http:\/\/www.kpmg.com\/ZA\/en\/IssuesAndInsights\/ArticlesPublications\/General-Industries-Publications\/Documents\/KPMG%27S%20Global%20Construction%20Survey%202012.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Global Construction Survey, KPMG<\/a> interviewed executives from over 150 organisations around the world that carry out significant capital construction and engineering activity. Key findings of this <a href=\"http:\/\/www.kpmg.com\/ZA\/en\/IssuesAndInsights\/ArticlesPublications\/General-Industries-Publications\/Documents\/KPMG%27S%20Global%20Construction%20Survey%202012.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">KPMG Survey<\/a> include:<\/p><ul style=\"text-align: justify;\"><li>46% of the respondents say only few projects exceed the original bid margin. In the EMEA-region (Europe, Middle East and Africa) this figure rises to 56%.<\/li><li>54% failed to identify upfront the issues that later caused margin erosion.<\/li><li>Only 36% of the respondents feel their project review processes are \u201cvery efficient\u201d.<\/li><\/ul><h2 style=\"text-align: justify;\">Why you should track gross margin<\/h2><p style=\"text-align: justify;\">Gross margin isn\u2019t something that every organisation thinks of tracking on a weekly and\/or monthly basis. Most of them rely on their mark-up formulas and assume that gross margin will naturally flow from there. But gross margin is too important to be left unattended. It&#8217;s right in the middle of everything. It flows directly from sales, it&#8217;s a leading indicator of profitability and cash flow, it&#8217;s the euros that cover the expenses, and it&#8217;s the critical element in measuring how productive your inventory investment is. Because of that, you should gain valuable insights by understanding what exactly is driving your margins.<strong>\u00a0<\/strong><\/p><h2 style=\"text-align: justify;\">Why you should keep margin erosion under control<\/h2><p style=\"text-align: justify;\">Margin erosion (also known as profit erosion) is a very common issue, by which particularly the machinery and equipment industry is affected since they often produce large custom products with long lead times. Margin erosion defines the loss of margin euros that occurs once you have won a\u00a0customer order. More simply, it is a gradual reduction in gross profits over time. Profit margin erosion can be caused by many things. Some of them, such as scope creep, poor resource management, human errors, poor quality control, lack of sufficient inventory, etc. are relatively easy to keep under control by putting a few processes in place. The most important but also most complex cause for margin erosion, however, is Non-Conformance Costs (NCCs).<\/p><h3 style=\"text-align: justify;\"><a href=\"#E-Book\" rel=\"noopener noreferrer\">Click here to download our E-Book and learn how to keep your Non-Conformance Costs under control and improve your profit margins.<\/a><\/h3><p style=\"text-align: justify;\"><strong><br \/><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-1773\" src=\"https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/08\/Profit-margin-erosion-during-projects-Non-Conformance-Costs-1.png\" alt=\"Profit margin erosion during projects - Non-Conformance Costs\" width=\"1161\" height=\"711\" srcset=\"https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/08\/Profit-margin-erosion-during-projects-Non-Conformance-Costs-1.png 1161w, https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/08\/Profit-margin-erosion-during-projects-Non-Conformance-Costs-1-300x184.png 300w, https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/08\/Profit-margin-erosion-during-projects-Non-Conformance-Costs-1-1024x627.png 1024w, https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/08\/Profit-margin-erosion-during-projects-Non-Conformance-Costs-1-768x470.png 768w\" sizes=\"(max-width: 1161px) 100vw, 1161px\" \/><br \/><\/strong><\/p><h2 style=\"text-align: justify;\">How scrap, re-work, warranty and other Non-Conformance Costs decrease\u00a0your project margins<\/h2><p style=\"text-align: justify;\">Non-Conformance Costs (NCCs) are additional costs that are not part of the original project plan, and result in the creeping margin erosion that can be found throughout many project-based businesses. We define them as all deviations between the preliminary and final costing of your customer projects. NCCs may include scrap, re-work, warranty, over-consumption, price variations and costs for additional customer requirements throughout the project. <a href=\"https:\/\/www.mcclatchydc.com\/news\/nation-world\/world\/article24784474.html\" target=\"_blank\" rel=\"noopener noreferrer\">The construction of the Berlin Brandenburg Airport for instance was preliminary cost estimated at \u20ac2.4 billion but has already breached the \u20ac6 billion mark<\/a> with a lot of rework that had to be done with regards to noise protection, cabling, the baggage system and many other things. This airport originally hoped to open its doors in 2011, but is now not expected to be completed until after 2017. In the project-based machinery and equipment industry, bad monitoring of Non-Conformance Costs can even jeopardise the future of the organisation. The Pennsylvania-based steel tubing manufacturer PTC Steamless Tube Corporation for instance was forced into bankruptcy after overruns in costs and delays in time for the construction and installation of a large mill-project in Hopkinsville, Kentucky (USA).<strong>\u00a0<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-366f6ad elementor-section-height-min-height elementor-section-boxed elementor-section-height-default elementor-section-items-middle\" data-id=\"366f6ad\" data-element_type=\"section\" data-e-type=\"section\" id=\"E-Book\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-42f213c\" data-id=\"42f213c\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-519fbc4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"519fbc4\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-9d22751\" data-id=\"9d22751\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f477c67 bdt-icon-type-image elementor-position-left elementor-widget__width-initial elementor-vertical-align-top bdt-icon-effect-none elementor-widget elementor-widget-bdt-advanced-icon-box\" data-id=\"f477c67\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"bdt-advanced-icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"bdt-ep-advanced-icon-box\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t<div class=\"bdt-ep-advanced-icon-box-icon\">\n\t\t\t\t<span class=\"bdt-ep-advanced-icon-box-icon-wrap\">\n\n\n\t\t\t\t\t<img decoding=\"async\" width=\"787\" height=\"1113\" src=\"https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/08\/E-Book-How-to-prevent-your-profit-margins-slipping-through-your-fingers.jpg\" class=\"attachment-full size-full\" alt=\"How to prevent your profit margins slipping through your fingers\" srcset=\"https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/08\/E-Book-How-to-prevent-your-profit-margins-slipping-through-your-fingers.jpg 787w, https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/08\/E-Book-How-to-prevent-your-profit-margins-slipping-through-your-fingers-212x300.jpg 212w, https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/08\/E-Book-How-to-prevent-your-profit-margins-slipping-through-your-fingers-724x1024.jpg 724w, https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/08\/E-Book-How-to-prevent-your-profit-margins-slipping-through-your-fingers-768x1086.jpg 768w, https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/08\/E-Book-How-to-prevent-your-profit-margins-slipping-through-your-fingers-600x849.jpg 600w\" sizes=\"(max-width: 787px) 100vw, 787px\" \/>\t\t\t\t<\/span>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\n\t\t\t<div class=\"bdt-ep-advanced-icon-box-content\">\n\n\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"bdt-ep-advanced-icon-box-title ep-title-\">\n\t\t\t<span >\n\t\t\t\tHow to prevent your profit margins slipping through your fingers\t\t\t<\/span>\n\t\t<\/h3>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"bdt-ep-advanced-icon-box-description\">\n\t\t\t\t\t\t<p>To keep Non-Conformance Costs under control efficiently and effectively, the<br \/>organisation must pay sufficient attention for every customer project to:<\/p><ul><li>cost transparency,<\/li><li>a detailed deviation analysis,<\/li><li>a lessons-learned-process.<\/li><\/ul><p>Learn more in our E-Book.<\/p><p><div class=\"activecampaign-inline-container \"><div class=\"activecampaign-inline-form\"> <div class=\"brlbs-cmpnt-container brlbs-cmpnt-content-blocker brlbs-cmpnt-with-individual-styles\" data-borlabs-cookie-content-blocker-id=\"active-campaign-email-marketing-form\" data-borlabs-cookie-content=\"PGRpdiBjbGFzcz0nX2Zvcm1fMjQ4Jz48L2Rpdj48c2NyaXB0IHR5cGU9J3RleHQvamF2YXNjcmlwdCcgc3JjPSdodHRwczovL3Bpa29uLmFjdGl2ZWhvc3RlZC5jb20vZi9lbWJlZC5waHA\/c3RhdGljPTAmaWQ9MjQ4JjZBODAyNTgwRjEyN0Embm9zdHlsZXM9MCZwcmV2aWV3PTAnPjwvc2NyaXB0Pg==\"><div class=\"brlbs-cmpnt-cb-preset-b brlbs-cmpnt-cb-ac-email-marketing\"> <div class=\"brlbs-cmpnt-cb-thumbnail\" style=\"background-image: url('https:\/\/www.pikon.com\/wp-content\/uploads\/borlabs-cookie\/1\/bct-mailchimp-vanilla-main.png')\"><\/div> <div class=\"brlbs-cmpnt-cb-main\"> <div class=\"brlbs-cmpnt-cb-content\"> <p class=\"brlbs-cmpnt-cb-description\">You are currently viewing a placeholder content from <strong>Active Campaign<\/strong>. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.<\/p> <a class=\"brlbs-cmpnt-cb-provider-toggle\" href=\"#\" data-borlabs-cookie-show-provider-information role=\"button\">More Information<\/a> <\/div> <div class=\"brlbs-cmpnt-cb-buttons\"> <a class=\"brlbs-cmpnt-cb-btn\" href=\"#\" data-borlabs-cookie-unblock role=\"button\">Unblock content<\/a> <a class=\"brlbs-cmpnt-cb-btn\" href=\"#\" data-borlabs-cookie-accept-service role=\"button\" style=\"display: inherit\">Accept required service and unblock content<\/a> <\/div> <\/div> <\/div><\/div><\/div><div class=\"activecampaign-inline-button\"><a class=\"cta-button\" href=\"#\">Download E-Book<\/a><\/div><\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\n\t\t\n\t\t\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f4f2007 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f4f2007\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e9d8c52\" data-id=\"e9d8c52\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-298a506 elementor-widget elementor-widget-text-editor\" data-id=\"298a506\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2 style=\"text-align: justify;\">How to keep Non-Conformance Costs under control\u00a0and stop them\u00a0eroding your profit margins<\/h2><p style=\"text-align: justify;\">Whilst cost variances cannot be completely avoided in the project business, there are steps that can be taken to minimise (or at least forecast and account for) Non-Conformance Costs. You can find them in <a href=\"#E-Book\" rel=\"noopener noreferrer\">our free E-Book &#8220;How to prevent your profit margins slipping through your fingers&#8221;<\/a>\u00a0and discover them in our <a href=\"#Webinar-NCC\" rel=\"noopener noreferrer\">webinar recording\u00a0&#8220;Getting To Grips With Non-Conformance Costs&#8221;<\/a>. After this, you will know\u00a0how to prevent Non-Conformance Costs further shrinking your own profit margins. At PIKON, we can help you keeping your Non-Conformance Costs under control with our own consulting solution, drawing on over 20 years of experience of working with project-based businesses combined with <a href=\"https:\/\/www.pikon.com\/en\/company\/\" target=\"_blank\" rel=\"noopener noreferrer\">our unique 3-point consulting approach<\/a>. Please click the button to find out\u00a0how to get to grips with Non-Conformance Costs with PIKON.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-04c6f56 elementor-section-height-min-height elementor-section-boxed elementor-section-height-default elementor-section-items-middle\" data-id=\"04c6f56\" data-element_type=\"section\" data-e-type=\"section\" id=\"Webinar-NCC\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-59e492e\" data-id=\"59e492e\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-92020b9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"92020b9\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-d02ab43\" data-id=\"d02ab43\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7125a06 bdt-icon-type-image elementor-position-left elementor-widget__width-initial elementor-vertical-align-top bdt-icon-effect-none elementor-widget elementor-widget-bdt-advanced-icon-box\" data-id=\"7125a06\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"bdt-advanced-icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"bdt-ep-advanced-icon-box\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t<div class=\"bdt-ep-advanced-icon-box-icon\">\n\t\t\t\t<span class=\"bdt-ep-advanced-icon-box-icon-wrap\">\n\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1280\" height=\"607\" src=\"https:\/\/www.pikon.com\/wp-content\/uploads\/2021\/03\/PIKON-Webinar-Getting-To-Grips-With-Non-Conformance-Costs-Start.png\" class=\"attachment-full size-full\" alt=\"Getting to grips with non-conformance costs\" srcset=\"https:\/\/www.pikon.com\/wp-content\/uploads\/2021\/03\/PIKON-Webinar-Getting-To-Grips-With-Non-Conformance-Costs-Start.png 1280w, https:\/\/www.pikon.com\/wp-content\/uploads\/2021\/03\/PIKON-Webinar-Getting-To-Grips-With-Non-Conformance-Costs-Start-300x142.png 300w, https:\/\/www.pikon.com\/wp-content\/uploads\/2021\/03\/PIKON-Webinar-Getting-To-Grips-With-Non-Conformance-Costs-Start-1024x486.png 1024w, https:\/\/www.pikon.com\/wp-content\/uploads\/2021\/03\/PIKON-Webinar-Getting-To-Grips-With-Non-Conformance-Costs-Start-768x364.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/>\t\t\t\t<\/span>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\n\t\t\t<div class=\"bdt-ep-advanced-icon-box-content\">\n\n\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"bdt-ep-advanced-icon-box-title ep-title-\">\n\t\t\t<span >\n\t\t\t\tGetting to grips with non-conformance costs\t\t\t<\/span>\n\t\t<\/h3>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"bdt-ep-advanced-icon-box-description\">\n\t\t\t\t\t\t<p>A major contributing factor towards the challenges of project-based businesses are Non-Conformance Costs (NCCs). These are additional costs that are not part of the original project plan, and result in the creeping profit margin erosion that can be found throughout many project-based businesses.<\/p><p>\u00a0<\/p><p><a class=\"cta-button\" href=\"https:\/\/www.pikon.com\/en\/doc\/getting-to-grips-with-non-conformance-costs\/\" target=\"_blank\" rel=\"noopener\">Watch the Webinar<\/a><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\n\t\t\n\t\t\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8ab52d7 elementor-section-height-min-height elementor-section-boxed elementor-section-height-default elementor-section-items-middle\" data-id=\"8ab52d7\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f7ac2eb\" data-id=\"f7ac2eb\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-1b40b8c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1b40b8c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-8baa8ec\" data-id=\"8baa8ec\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-51c9d18 elementor-widget elementor-widget-heading\" data-id=\"51c9d18\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Contact us!<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-5aba130 elementor-section-height-min-height elementor-section-boxed elementor-section-height-default\" data-id=\"5aba130\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-65aac0d\" data-id=\"65aac0d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f91aa18 elementor-widget__width-initial elementor-widget elementor-widget-pikon-author-box-widget\" data-id=\"f91aa18\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pikon-author-box-widget.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-widget-image-box elementor-position-left elementor-vertical-align-top\"><div class=\"elementor-image-box-wrapper\"><figure class=\"elementor-image-box-img\"><img decoding=\"async\" src=\"https:\/\/www.pikon.com\/wp-content\/uploads\/2023\/03\/Martina_klein-1-150x150.jpg\" alt=\"Martina Ksinsik\" title=\"Martina Ksinsik\" loading=\"lazy\"\/><\/a><\/figure><div class=\"elementor-image-box-content\"><div class=\"elementor-image-box-title\">Martina Ksinsik<\/div><div class=\"elementor-image-box-position\">Customer Success Manager<\/div><div class=\"elementor-image-box-phone\"><a href=\"tel:+4968137962113\"><i class=\"fas fa-phone\"><\/i> +49 (0) 681 379 62 - 113<\/a><\/div><div class=\"elementor-image-box-mail\"><a href=\"mailto:martina.ksinsik@pikon.com\"><i class=\"fa-fw far fa-envelope\"><\/i> martina.ksinsik@pikon.com<\/a><\/div><div class=\"elementor-image-box-description\"><p><div class=\"activecampaign-inline-container \"><div class=\"activecampaign-inline-form\">[borlabs-cookie id=\"active-campaign-email-marketing-form\" type=\"content-blocker\"]<div class='_form_230'><\/div><script type='text\/javascript' src='https:\/\/pikon.activehosted.com\/f\/embed.php?static=0&id=230&6A80258106DC9&nostyles=0&preview=0'><\/script>[\/borlabs-cookie]<\/div><div class=\"activecampaign-inline-button\"><a class=\"cta-button\" href=\"#\">Request a web-meeting<\/a><\/div><\/div><\/p><\/div><\/div><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Everything appears to run smoothly until your project controlling comes with the alarming message?<\/p>\n","protected":false},"author":3,"featured_media":2751,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[468,140,110],"class_list":["post-1012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-posts","tag-finance-accounting","tag-mechanical-and-plant-engineering","tag-project-management","no-featured-image-padding"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - 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