Bill of Materials Cost Projections

Knowing BOM costs is critical for product based companies. Unfortunately, these costs are often over simplified by making poor assumptions such as costs being equal across all plants or regional variations are immaterial. These assumptions mask the real BOM cost and cause sub-optimal sourcing decisions as well as false cost reductions.

PlaidCloud does not make these lethal assumptions. Instead, PlaidCloud takes the part, location, supplier, and manufacturer equivalent part into account when calculating the BOM cost. In order to assure that these numbers are not approximations PlaidCloud also takes negotiated supplier cost takedowns or special charges into account. This way the engineering and sourcing team have a single projection for component and assembly cost.

Managing these thousands or millions of parts can be a daunting task, but PlaidCloud can help make this easier too. It provides the ability to search, group, and subscribe to sets of parts relevant to specific individuals.

PlaidCloud also offers the ability to view BOMs from indented, flat, and projected views. The indented BOM view shows structure of assemblies and their cost initiatives in a way where the rollup of components, sub-assemblies, and assemblies are clear. The flat view is particularly useful for sourcing as it provides value added cost with, cost influencers, component level, and total count of components shown in a flat list, even those existing across several sub-assemblies. Finally, the Projected view provides a cost projection over two calendar years factoring in engineering changes, cost takedowns, adjustments, overrides, and value added assembly costs.

Built by people with real world experiences in financial, operational, and costing analysis, PlaidCloud is a trustworthy tool designed to aid and support analysts. It was designed by analysts for analysts.