Costing Engineer

Job in brief: A Costing Engineer is responsible for estimating and analyzing product manufacturing and production costs to help the company control expenses, improve profitability, and support effective business decisions.

Key Skills:  

Technical Skills

·       Knowledge of Manufacturing Processes – Understanding of machining, fabrication, welding, assembly, casting, and molding processes for accurate production cost estimation.

·       BOM and Routing Understanding – Knowledge of BOM (Bill of Materials) materials/components list and routing (manufacturing sequence, machine usage, and process time) for cost calculation.

·       Cost Accounting Basics – Basic knowledge of material cost, labor cost, overheads, standard costing, and variance analysis to control manufacturing expenses.

·       ERP Software Knowledge – Ability to work on ERP systems like SAP ERP and Oracle ERP for costing, inventory, and report management.

·       Advanced Excel Skills – Strong knowledge of formulas, pivot tables, VLOOKUP/XLOOKUP, data analysis, and reporting for preparing costing reports.

·       AutoCAD or Engineering Drawing Reading – Ability to read engineering drawings, understand product specifications, and use AutoCAD for accurate cost estimation.

Analytical Skills

·       Cost Analysis: Ability to analyze material, labour, machine, and overhead costs to control expenses and improve profitability.

·       Data Interpretation: Ability to understand production and financial data for accurate cost comparison and decision-making.

·       Problem-Solving: Ability to identify costing or production issues and provide effective cost-saving solutions.

·       Attention to Detail: Strong accuracy in checking BOMs, calculations, reports, and production data to avoid costing errors.

Soft Skills

·       Communication: Ability to communicate clearly with production, purchase, finance, and other teams for smooth coordination and information sharing.

·       Negotiation: Ability to discuss and achieve better pricing, cost reduction, and favorable terms with suppliers or internal teams.

·       Team Coordination: Ability to work effectively with different departments to ensure smooth project execution and costing activities.

·       Time Management: Ability to prioritize tasks and complete costing reports, quotations, and projects within deadlines.

Major responsibilities:

·       Product Cost Estimation- Prepare detailed cost estimates for new and existing products by calculating: Raw material cost, Machine cost, Labor cost, Tooling cost, Overhead expenses to Analyzing BOM and routing sheets for accurate product costing.

·       Manufacturing Cost Analysis- Monitor production and operational costs, compare actual cost with standard cost, and identify opportunities for cost reduction and process improvement.

·       Quotation & Pricing Support- Support sales and marketing teams with accurate product pricing, prepare RFQ/RFP cost estimates, and assist in tender costing and commercial proposals.

·       Process & Productivity Improvement- Coordinate with production and industrial engineering teams to optimize manufacturing costs, suggest alternative materials or processes for cost savings, and participate in value engineering and lean manufacturing activities.

·       Data & Reporting- Maintain costing databases and ERP records, and generate MIS reports related to: Product margins, Variance analysis, Inventory valuation, Cost trends

·       Vendor & Procurement Coordination- Work with procurement teams for material pricing, analyze supplier quotations and cost structures, and support cost-effective purchasing decisions.

·        Cross-functional Coordination- Coordinate closely with Production, Design, Purchase, Quality, Finance, and Sales teams to ensure accurate costing and smooth project execution.