Product Costing · part of Engineering & PLM

Product Costing Software Know what a design change costs before you sign the ECN.

Roll up material, scrap, setup, labour, machine, subcontract and overhead through every BOM level. Every number traces back to the line, price source and rate it came from.

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COST-RUN-0031 · Pune plant, Q4 standard In review

248Parts costed

0Errors

7Warnings

+2.8%vs current standard

4410-2207 Valve body assemblyMaterial 61%, machine 18%, labour 9%+3.1%
4410-1180 Seat ringPrice: info record, preferred supplierOK
4410-0915 Stem, EN8Price: last PO, 12 SepPrice change
4410-3302 Bonnet castingNo routing: material onlyWarning

The basics

What is product costing?

Product costing works out what it costs to make one unit of a part. It adds purchased material and scrap from the bill of materials, setup, labour and machine time from the routing, subcontract and external operations, and overhead. A standard cost is the released figure the business plans and quotes against.

The cost sheet usually lives in one person's spreadsheet. It uses last year's prices, forgets the scrap on a seat ring and nobody can say where the machine rate came from. When engineering proposes a change, the cost impact on the ECR is a guess, and it can take weeks to get even that.

Features

Manufacturing costing software built on your BOMs and routings

BOM cost roll-up

Costs roll up through the production BOM of a plant, or the engineering BOM, with phantoms exploded and scrap shown as its own component. A finished good still shows the labour three levels down.

Material price strategy you set

Choose the order in which prices are taken: info record, last PO, planned price or current standard. A missing price, rate or exchange rate is an error on the estimate, never a silent zero.

Cost runs and standard costing

Simulate a run, send it for review and release it as the new standard. A reviewer can be required to differ from the person who created the run, and history is never deleted.

Compare runs with the reason

Compare any two runs or estimates line by line. Each difference is labelled: added, removed, quantity, scrap, price, price source, exchange rate, time, rate, lot size or overhead rate.

Target, actual and should-cost

Record target and should-cost per part revision, and see them against the standard and an actual cost from goods receipts and finished manufacturing orders, with a flag when a part is over target.

Cost impact of engineering changes

For an ECR, ECN or BCR, the before and after cost of each changed part is worked out from its BOM and routing changes and shown in the change impact view.

Connected

Product Costing doesn't live alone

Costs come from data already in the system: BOMs and part revisions from PLM, info records, PO prices and goods receipts from Purchase, and routings and work centre rates from Manufacturing. Engineering changes show their computed cost impact.

Standards and industries

Cost estimating software for manufacturing teams

Costing follows standard costing practice, so finance and engineering read the same numbers.

Industry	Standard	What you get
Automotive	IATF 16949 change management	Cost impact recorded with each engineering change before approval
Discrete manufacturing	Standard costing method	Simulate, review and release standard costs per plant with full history
Make to order and engineered products	Should-cost and target costing	Target, should-cost and actual compared with the standard for each part

FAQ

Product costing questions

Still unsure? Ask our team.

What is standard costing?

Standard costing sets a planned cost for each part, built from expected material prices, quantities, times and rates. Actual costs are then compared with it. In YourBrand a standard is created only by releasing a reviewed cost run, and each release is kept in history.

How do you calculate product cost?

Add the cost of every component in the BOM times its quantity, plus scrap, then add setup, labour and machine time from the routing at the work centre rates, plus subcontract and external operations, plus overhead. Do it bottom-up for each level of the BOM.

How do you calculate manufacturing cost per unit?

Spread setup and cleanup time over the costing lot size, add run time per piece, divide by work centre efficiency and multiply by the machine and labour rates. YourBrand does this per operation and shows each figure on the estimate.

What is should-cost analysis?

Should-cost analysis estimates what a part ought to cost from its material, process and a fair margin, so purchase can challenge a supplier quote. In YourBrand you enter or import a should-cost per part revision and compare it with standard, target and actual.

What is a cost roll-up?

A cost roll-up calculates an assembly's cost from the costs of its components, level by level through the BOM. YourBrand carries the cost component split upward, so you can see material, labour, machine and overhead at the top level.

Does it post to our accounts?

No. Released standards are for engineering, purchase and management decisions. YourBrand does not post inventory valuation or variances to a ledger.

Put a cost you can explain on every part

We walk through it with your own parts and documents. It takes about 30 minutes.

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