How to calculate product cost in multi-level BOM structure using OpenBOM

It is hard to find something more important in product development than to understand your product cost. To be able to calculate cost is critical. To apply changes is also important. If you can do it fast and accurate, you will be in full control of your product cost.

One of the most frequently asked questions from OpenBOM users is how to calculate cost of product in multi-level structure. This is one of the tasks that almost impossible to do using Excel. But OpenBOM can do it very easy and simple.

Imaging the following BOM in Excel, which has one component (assembly PCB) with sub-components. You cannot do much with this in Excel.

However with OpenBOM you can calculate cost and maintain changes in a very simple way. Watch this video with step-by-step explanations how to do so

In less than 5 minutes, you Excel will be transformed into multi-level BOM structure and product cost will be calculated as following.

Conclusion.

Don’t spend your time creating formulas in Excel and spreadsheets. Bill of Materials are complex structures. OpenBOM can give you an easy way to do so. Subscribe to OpenBOM here for free and you will never come back to Excel again.

Best, Oleg

PS. Let’s get to know each other better. If you live in the Greater Boston area, I invite you for a coffee together (coffee is on me). If not nearby, let’s have a virtual coffee session — I will figure out how to send you a real coffee.

Want to learn more about PLM? Check out my Beyond PLM blog and PLM Book website.