Let There Be No More Assumptions on Product Cost
December 10, 2021
When it comes to financial functionalities, no one will like to work with assumptions that are mostly inaccurate. Budgeting is a pre-process that is allowed to be approxiamated and that too is up to some limit. But the costing of a product should be accounted for properly in each phase to understand the actual cost of the product.
In the industries, stakeholders and top-level management would never be happy with the final cost estimation processes. People started adjusting with the spreadsheet since they were not having any other options to do so. Stress was still there on the different shoulders this time. The person handling the spreadsheets for costing calculations should be highly cautious, attentive, and skilled.
Additionally, these outputs from the spreadsheet calculations still do not make the stakeholders happy at some instances when the spreadsheet guy missed out on some data. This automatic cost roll-up featured platform is in high demand in the industries but a little hard to find or so hard to afford.
Improve Product Cost Management With KloudPLM
KloudPLM is basically a Product Lifecycle Management tool that is built on the native cloud to serve the industries with the futuristic feature-packed product at an affordable price. Most of the time startups would not prefer the PLM in their premises just because of the expenses even though it is the most needed platform to have. KloudPLM suits the great-grown industries as well the startups since it has all the advanced features at minimal expenditure.
Now, what is the role of a PLM product in financial calculations?
PLMs are the most systematic way of monitoring the processes. If that can capture the cost involved in each phase of the process, Industries are gifted to have such a platform. This is what our KloudPLM does.
Most hectic cost calculations in the industries are:
BOM Cost Rollup
Change or Revision Cost
Other Financial Aspects
There are some outside financial environments such as CSR, Employee pays, and more. But those are less considered while calculating the Product cost. Let’s just go a bit deeper into these topics and how KloudPLM assist in those areas
When it comes to Product cost, parts and assemblies are the major contenders to consume the cost. In KloudPLM, each and every part is fed with its cost. When the parts are formed into an assembly that is a BOM in our case, the cost of the parts will automatically be rolled up to visualize the overall cost of the BOM. This is just no effort calculation of BOM cost.
Do you remember the spreadsheet guy who missed out on some data? Here no need to worry about the missing data. It is simply automated. Along with these, a dynamic appealing dashboard can show the overall cost burnt by all the parts or all the BOM in a single graphical representation. BOM cost rollup helps experts to visualize which parts can be replaced or changed to achieve cost reduction.
A manufacturing manager can estimate the cost of producing the parts or assembly that includes the processes to get the final product. But how and where can the top-level management professionals get to know these? For this, KloudPLM provides highly detailed MBOM (Manufacturing Bill Of Material). By linking the BOM, all the parts and BOM costs are fetched.
Now the manufacturing manager can fill out the process cost or consumables cost of each stage in the manufacturing line. And the overall cost can be added automatically to have a clear view of the cost of production alongside the part costs.
Change or Revision Cost
Change Management is one of the highlighted and effective modules KloudPLM. Along with the change request and change order, Change Manager can capture the replacement cost, scrap cost, and any other additional cost involved in achieving the change. This helps the stakeholders to make the decisions better when a change arises in the product.
Other Financial Aspects
Other than the external or resources or investment cost is not much involved in the product cost. But still, there are some financial parameters that need to be captured systematically. Budgeting, Internal Quote Preparation, and Supplier Quotes are some of the important factors to be stored in the system. With Requirement Management in KloudPLM, Budgeting and Internal Quote Preparation are tracked and managed effectively. And for the supplier quotes and managing the supplier parts and cost, we offer a specific Suppliers module to make it easier.
Simply put, when KloudPLM is in all the phases of the product, the product cost calculation will never be a stressful job to do. Impressed? Features are not limited to this. Visit our website to explore the future of industries. Schedule a demo today!