What is real-time cost price calculation?
Most manufacturing companies calculate cost prices after the fact, based on estimates and averages. The gap between estimated and actual cost prices can be 10–25%. According to KPMG, 60% of manufacturing companies underestimate their actual production costs due to a lack of real-time data.
AI cost price calculation links sensor data (cycle times, energy consumption, material usage) to order and personnel data to calculate the actual cost price per product or order — during production.
How does it work?
Sensors and PLCs deliver real-time data on machine cycles, energy consumption and material usage. This data is combined with labour rates, overhead allocations and material costs from your ERP system. AI continuously calculates the current cost price per product, per order and per customer.
The system flags deviations from the planned cost price in real time. If an order is running over budget, you know immediately — not weeks later during the post-calculation.
What does it deliver?
Manufacturing companies report up to 15% better margins through more accurate pricing, faster detection of cost overruns and better-substantiated quotes. According to Deloitte, companies with real-time cost price insight improve their quote win rate by 20% because they can quote more sharply and accurately.