Product Costing

Many companies are still using isolated databases and spreadsheets, even for cost calculations in early stages of the product development process. Typically, enterprise resource planning (ERP) systems do not provide sufficient support for a reliable cost analysis in the early phases of product development.

Teamcenter®  product costing provides an enterprise-wide platform for creating and managing calculations and captures the company’s internal costing expertise centrally. Teamcenter product costing also provides the ability for data exchange between ERP and product lifecycle management (PLM). Product costing uses the methodology of the classic overhead calculation based on a bottom-up approach. This approach is based on a detailed product structure and defines the use of materials and the process costs. Calculations are based on current benchmark data for manufacturing technologies, machines, materials and worldwide labor costs. Various departments, such as cost engineering, purchasing, controlling and sales, can work together by using Teamcenter to achieve the maximum benefit.