Product Cost Engineer I

Job Overview

The Product Cost Engineer partners with Engineering, Manufacturing, Supply Chain, and Finance to develop accurate, data-driven product cost models and drive cost reduction across the product lifecycle. This role owns costed Bills of Material (BOMs) and routings, performs should-cost and variance analyses, and supports design-to-cost, sourcing, and continuous improvement initiatives.

The position provides cost transparency and structured analysis that enables fact-based decision-making across product development, operations, and procurement.

Key Job Responsibilities

Product Cost Modeling & Estimating

· Develop, validate, and maintain detailed product cost models including material, labor, overhead, scrap/yield, freight, tooling, and outside processing.

· Create and maintain accurate costed Bills of Material (BOMs) and manufacturing routings; ensure alignment with ERP/MRP master data.

· Perform bottoms-up and should-cost analyses for new designs, supplier quotes, and make/buy decisions.

· Evaluate alternative design and manufacturing scenarios to identify the most cost-effective solutions.

 

Design-to-Cost & Cost Reduction

· Identify key cost drivers and partner with Engineering and Manufacturing to recommend design or process improvements.

· Support Value Engineering and continuous improvement initiatives with structured cost breakdowns.

· Track cost savings projects, document assumptions, and report realized results.

 

Variance & Financial Analysis

· Analyze cost variances (PPV, material usage, labor efficiency, overhead absorption).

· Partner with Operations and Supply Chain to identify root causes and implement corrective actions.

· Provide reporting and analysis to support informed decision-making at multiple organizational levels.

NPI, Change Management & Quoting

· Provide costing support for RFQs, New Product Introduction (NPI), and Engineering Change Orders (ECO/ECN).

· Assess tooling and capital expenditure impacts associated with product changes.

· Ensure costing assumptions are documented, traceable, and audit-ready.

 

Cross-Functional & Process Support

· Collaborate with Supply Chain on supplier negotiations using fact-based cost breakdowns.

· Validate internal and supplier lead times to ensure ERP accuracy and planning reliability.

· Support development and standardization of costing methodologies and organizational controls.

· Improve ERP data integrity related to costed BOMs, routings, and planning parameters.

· Partner across Engineering, Manufacturing, Procurement, and Finance to improve overall operational effectiveness.

 

Qualifications/Requirements

· Bachelor’s degree in engineering (Mechanical, Industrial, Manufacturing, or related field) or equivalent experience.

· 2+ years of experience in cost engineering, product costing, manufacturing engineering, or related roles in a manufacturing environment.

· Working knowledge of manufacturing processes (machining, welding/fabrication, casting/forging, assembly, etc.).

· Strong analytical skills with the ability to build and clearly communicate cost models in Excel.

· Experience with ERP systems (SAP, Oracle, JD Edwards, Dynamics, etc.) and costed BOM/routing structures.

· Strong written and verbal communication skills appropriate for all levels of the organization.

 

Additional Information

· Experience with should-cost tools, labor standards, or time studies.

· Familiarity with standard costing and variance analysis.

· Experience supporting quoting/NPI workflows and change control processes.

· Basic understanding of finance concepts including margin, absorption, and inventory valuation.

· Experience with Power BI or similar reporting tools.