GAIN COMPETITIVENESS AND PROFITABILITY
WITH ACCURATE ESTIMATION
40% Increase in operational
25% Increase in employee
Cost Estimation Is Complex
Engineered products with longer product cycle times and multiple levels of subassemblies in their bills of material are complex to estimate.
There are many different approaches to engineered product development including:
- Using in-house resources and facility entirely
- Leveraging a vendor for the development of subassemblies combined with in-house assembly
- Procuring a part directly from a vendor
- Combination of all the above approaches
This makes estimating the overall cost of a product extremely complex and error prone.
Manual Processes Lack Reproducibility
The traditional approach to estimating part cost begins with the engineer or buyer creating estimation worksheets manually or using personally developed Microsoft Excel spreadsheet based on their experience. This requires them to enter lot many data points related to raw material, part and/or tool, processes and other misc. direct cost. They manually gather, enter and manage multiple layers of data stored from a variety of platforms like ERP, old MS Excel, CAD, emails, and sometime even in hard copy format and registers. The process is very time-consuming, involves duplication of efforts in entering data-points and lacks reproducibility.
Speed and Accuracy is Critical for Competitiveness
Manual worksheets or spreadsheets may be an option for the short term but in the long run this approach proves to be costly as just an error can make entire costing go wrong. Manual process and people-dependency do not constitute structured data that plays a pivotal role in predicting trends of the cost drivers and doing analysis. Speed and accuracy in estimating the cost of the Product, Part, Material, BOM is critical if manufacturing, engineering and OEM companies aspire to remain competitive and profitable.
Raw Material Price Inflation Impact Analysis
Suppliers’ Share of Business (SOB) Analysis
Cost Drivers Management & Analysis
Integrated Workflow for Approvals
Cost Reduction Opportunity Analysis
Dashboard and Reporting
Vendor Portal for RFQ, Negotiation and Ordering
EXPLORE COST IT RIGHT
Cost IT Right is a costing intelligence application designed to meet the operational needs of material costing and strategic sourcing, bringing meaningful change in the complete ecosystem through automation.
Cost IT Right helps you achieve real-time cost data analysis for real-time decision making. The functional aspects of the application integrate and automate six major operations.
CUSTOMERS LEVERAGING COST IT RIGHT
Cost IT Right helps automate the cost estimation process for Automotive, Manufacturing, Engineering and OEM companies. It is preloaded with industry-validated cost drivers database that brings in accuracy and speeds up estimation process. This database is customizable to meet specific requirements, if any.
Enhance system capabilities with
- Costing intelligence
- Real-time purchase price analysis
- Product cost control
- Cost driver simulation
- Quick workflow approval
- Cost trend analysis
- Supplier RFQ portal
- Material costing and strategic sourcing
Minimise identified risks of manual processes from
- BOM level cost sheet development
- Unorganized historical data
- Inconsistency in document
- MS Excel dependency
- Complex comparison of price quotation
- System incapability of generate bulk purchase order
- Inaccurate of reports and insights
- Arbitrary supplier negotiation
See How You Can Improve Costing Operations Efficiency
Explore how Cost IT Right can reduce Cost Estimation Risks. Schedule a demo to see the benefits