Product Design Cost:
accurate costing from concept to production
Gain full visibility on product costs during prototyping and development. Mars PLM Product Design Cost delivers BOM-based cost calculation directly within SAP, so every design decision is backed by real financial data.
OVERVIEW
Mars PLM Product Design Cost enables manufacturing companies to calculate and control product costs from the earliest stages of development — directly within SAP.
By combining BOM-based cost calculation with prototype version comparison, overhead configuration and SAP PS budget integration, the module gives engineering and finance teams a shared, accurate cost baseline long before production begins.
Every design decision — material selection, routing alternative, make-or-buy choice — is evaluated against its real financial impact, reducing the risk of late-stage surprises and protecting target margins across the entire product development cycle.
80%
of a product's cost is determined
during the early design stages
BENEFITS
Cost estimation that drives better products and smarter budgets
Product costing shouldn't be an afterthought. With early cost estimation built into the development cycle, teams evaluate alternatives, reduce risk and protect margins — before a single component reaches the shop floor.
FEATURES
Built for the way cost engineers actually work
Every feature in Product Design Cost is designed to deliver reliable, BOM-based cost calculation within your existing SAP environment without workarounds or spreadsheets.
| Feature | What it does |
|---|---|
| Customizable Overhead | Configure overhead allocation rules that reflect your actual cost structure. Distribute indirect costs with full flexibility — from percentage markups to activity-based models. |
| Product Structure Creation | Build comprehensive multi-level BOMs during concept and design phases. Every material, sub-assembly and bought-out item carries its cost for a complete picture before engineering handover. |
| SAP Material Master Integration | Read standard costs, prices and procurement data directly from SAP. Create placeholder components for items not yet in the system, and reconcile them as the design matures. |
| Prototype Version Comparison | Track the cost trajectory across design iterations. View line-by-line deltas between prototype versions and pinpoint exactly which changes drive cost up or down. |
| Engineering BOM Handover | When a design is approved, transition directly to a production-ready engineering BOM. No rework, no data re-entry — structure and cost data carry forward seamlessly. |
| Approval Workflows | Define multi-step approval processes aligned to your organization's sign-off rules. Notify stakeholders, track review status and maintain a full audit trail of cost decisions. |
| SAP PS Budget Controlling | Push preventive cost estimates to SAP Project System as project budgets. Align product costing with project controlling for a single source of financial truth. |
| Early-Stage Cost Estimation | Begin estimating costs before full engineering data exists. Use parametric inputs, historical benchmarks and preliminary BOMs to evaluate feasibility and set target costs. |
HOW IT WORKS
From concept sketch to production-ready costing
Product Design Cost follows the natural rhythm of product development, adding cost intelligence at every stage.
Define Structure
Create the product BOM during concept phase using existing SAP materials or placeholder components.
Estimate Costs
Calculate material, labor and overhead costs based on BOM quantities and your configured cost model.
Compare & Optimize
Benchmark prototype versions, evaluate alternatives and iterate until cost targets and quality align.
Approve & Hand Over
Route the final cost estimate through approval workflows, then transfer the validated BOM to engineering.
INDUSTRIES
Product costing across manufacturing sectors
Product Design Cost is built to adapt to the cost structures, BOM complexity and regulatory requirements of multiple manufacturing verticals.
Multi-level BOMs, configurable products and complex assemblies — cost estimation for engineered-to-order and make-to-stock environments.
Formula-based costing, batch sizing and yield variations. Recipe structures integrated with SAP cost elements for early-stage estimation.
Long-lead procurement, project-driven BOMs and volatile raw material pricing within a controlled cost estimation framework.
Frequently Asked Questions
about Product Design Cost
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Product Design Cost is a module within the Mars PLM addon for SAP ECC and S/4HANA. It enables manufacturing companies to calculate product costs during the prototyping and development phases, using BOM-based cost calculation directly within SAP. The module brings financial visibility into the design process so teams can make cost-informed decisions before production begins.
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The module reads material costs, standard prices and procurement data from the SAP material master. As engineers build or modify the product BOM during design, costs are calculated automatically at every level of the structure — raw materials, sub-assemblies, bought-out items and overhead. This gives teams a reliable, up-to-date cost estimate tied to actual SAP data rather than spreadsheet assumptions.
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Yes. Product Design Cost includes a prototype version comparison feature that lets you evaluate cost differences between design iterations. You can view line-by-line deltas to understand exactly which material or routing changes are driving cost increases or reductions, enabling data-driven design optimization.
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It does. Preventive cost estimates generated during the design phase can be passed to SAP Project System as budget baselines. This integration allows project controllers to track actual costs against initial projections and catch budget overruns early, maintaining financial discipline throughout the development program.
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Product Design Cost provides a simplified handover to the engineering BOM. When a design is approved through the built-in workflow, the product structure and its associated cost data transfer directly into the production-ready BOM — no manual re-entry or data migration required.
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Yes. The module supports early-stage cost estimation using parametric inputs, historical benchmarks and preliminary BOMs. This means teams can evaluate feasibility and set target costs from the concept phase, well before detailed engineering specifications are complete.
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The module is designed for discrete manufacturing, process industries and energy, gas & oil. It adapts to different cost structures, BOM complexity levels and regulatory requirements — from multi-level assembly costing in discrete manufacturing to formula-based recipe costing in process industries.
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Product Design Cost offers fully customizable overhead definition. You can configure allocation rules that match your actual cost structure — whether that means percentage-based markups, activity-based costing or any combination. Indirect costs are distributed onto product lines precisely, giving you a realistic total cost picture.
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No. Product Design Cost runs natively on SAP ECC and S/4HANA. It is configured directly on your existing SAP landscape with no middleware, external databases or third-party connectors required. It reads from and writes to standard SAP objects.
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The module includes built-in approval workflows and collaboration features. You can define multi-step sign-off processes, notify stakeholders automatically and track review status with a full audit trail. Engineering, procurement and finance teams all work on the same cost baseline, eliminating version conflicts and misalignment.
Ready to bring cost intelligence into your design process?
See how Product Design Cost can reduce prototyping cycles, improve cost accuracy and connect your product development to SAP financials.