Who We Are

Dedicated to making world-class cost management accessible to every business, from our home in Porto to clients around the world.

Our Story

Founded in Porto, Cost and Profitability Consulting was born from a simple vision: to bring Time-Driven Activity-Based Costing (TDABC) within reach of every business, regardless of size.

Our founders, Miguel Guimarães and Irina Costa, recognized that many SMEs and mid-market companies lacked the tools and expertise to truly understand their cost structures. They partnered to create a consulting practice that combines deep technical knowledge with pragmatic implementation methodologies.

Today, we serve businesses globally, helping them unlock profitability insights and make data-driven decisions. Our work is grounded in rigour, transparency, and genuine partnership with every client.

Professional consulting workshop

Our Mission

Make world-class cost management accessible to every business, enabling informed decisions and sustainable profitability growth.

Our Approach

Hands-on, data-driven, and tailored TDABC implementation that fits your business reality, not a one-size-fits-all template.

Our Values

Transparency, rigour, and partnership. We believe in honest dialogue, meticulous work, and relationships built on trust and results.

Meet the Founders

Miguel Guimarães

Miguel Guimarães

Founder & TDABC Specialist

Engineer by training, Miguel founded Cost and Profitability Consulting to bring Time-Driven Activity-Based Costing to SMEs. With global client experience, he leads our methodology development and client engagements. He is also the co-founder and the architect behind CostCtrl, the most innovative cloud-based AI-driven software to implement TDABC.

Irina Costa

Irina Costa

Co-Founder, Admin and Business Development

Irina drives the administrative and commercial side of Cost and Profitability Consulting. With a strong background in business management, she oversees client relationships, partnerships, and operations, ensuring every engagement runs smoothly from first contact to final delivery.

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Industry Solutions

Manufacturing Cost & Profitability

Eliminate hidden overhead distortion. Understand true product costs including setup, quality, and logistics with activity-based precision.

18-30%Typical Margin Improvement
35%Avg. SKUs Destroying Value
800+SKUs Analyzed per Engagement
4-8 moImplementation Timeline

The Manufacturing Costing Problem

Manufacturing companies often allocate overhead using machine hours or labor hours alone. This distorts product costs by spreading complex, low-volume product costs across high-volume, simpler products, making profitable products appear less attractive and unprofitable ones seem viable.

The Overhead Allocation Trap

A manufacturer producing 800 SKUs found that standard costing showed all product lines within 5% of target margin. TDABC analysis revealed the truth: high-volume products were being overcharged for overhead by 40%, while low-volume specialty items consumed 3x more setup, quality inspection, and handling resources than allocated. The real margin spread was -15% to +45%.

Our Manufacturing TDABC Approach

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Production Mapping

Map every production activity: machine setup, run time, changeovers, quality inspection, material handling, packaging, and shipping. Capture time and resource requirements for each product family.

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Setup & Changeover Analysis

Quantify the true cost of setups and changeovers by product. Low-volume, high-variety products often consume disproportionate setup time, a cost invisible in traditional systems.

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Machine Cost Rates

Calculate cost-per-minute for each machine center, including depreciation, maintenance, energy, operator time, and floor space. Differentiate between active production and idle capacity.

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Quality Cost Tracing

Trace quality-related costs (inspection, rework, scrap, warranty) to specific products. Some products consume 5-10x more quality resources than average, but this is hidden in overhead pools.

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Logistics & Handling

Map internal logistics: material movement, storage, picking, packing, and shipping costs per product. Custom packaging and special handling requirements can dramatically impact true product cost.

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SKU Rationalization

Build a whale curve of product profitability. Identify candidates for pricing adjustment, process improvement, or strategic discontinuation. Focus resources on products that create value.

Success Story: Automotive Parts Manufacturer

The Challenge

A mid-size automotive parts manufacturer with 800+ SKUs was experiencing margin erosion despite stable revenue. Management suspected pricing issues but couldn't identify which products were the problem. Standard costing showed all product families within acceptable margin ranges.

18%
Overall profitability increase within 12 months

The Outcome

TDABC revealed that 35% of SKUs were destroying value. The top 20% generated 180% of total profit. Armed with this insight, the manufacturer repriced 120 underpriced products, discontinued 85 value-destroying SKUs, and streamlined production scheduling. Machine utilization improved by 22% and overall profitability increased by 18%.

Manufacturing Outcomes Comparison

AreaBefore TDABCAfter TDABC
Product costingVolume-based overhead allocationActivity-based cost per product
Setup costsSpread across all productsTraced to specific products/batches
Quality costsGeneral overhead poolProduct-specific quality cost
Make vs. buy decisionsBased on standard costsBased on true activity costs
Pricing strategyCost-plus with averaged costsProduct-specific margin targets

Stop Subsidizing Unprofitable Products

Your standard costing system is hiding the truth. Get product-level precision and make confident manufacturing decisions.

Request a Manufacturing Assessment