Head Product Costing

Job Purpose

Lead the product costing, cost estimation, variance analysis and cost optimisation function for KLR Industries' Drilling Rigs, Mining Equipment and Heavy Engineering products.

The role requires strong knowledge of engineering BOMs, manufacturing processes, raw materials, machining, fabrication, welding, hydraulics, bought-out components, assembly, overhead costing and SAP-based product costing.

Key Responsibilities

1. Product Costing

• Prepare accurate product-wise and rig-wise cost sheets.
• Develop standard costing for Drilling Rigs, DTH Rigs, Water Well Rigs, Mining Rigs and allied products.
• Calculate material, labour, machining, fabrication, assembly, subcontracting and overhead costs.
• Ensure costing is based on the latest BOM, drawings and manufacturing processes.

2. SAP & ERP Costing

• Strong hands-on knowledge of SAP Product Costing / CO-PC is preferred.
• Maintain and review Material Master, BOM, Routing, Work Centres and Costing Variants in SAP.
• Prepare and analyse standard cost estimates and cost roll-ups in SAP.
• Monitor material, activity and overhead rates used for product costing.
• Analyse planned vs. actual costs through SAP reports.
• Coordinate with SAP/IT teams for costing master-data accuracy and system improvements.
• Ensure proper integration between SAP MM, PP and CO modules for accurate product costing.

3. BOM & Engineering Costing

• Review BOMs and routing from a costing perspective.
• Analyse cost impact of design changes, engineering changes and product customisation.
• Cost components, sub-assemblies and complete rigs.
• Work closely with Engineering on Design-to-Cost and Value Engineering.

4. Cost Variance Analysis

• Analyse Standard Cost vs. Actual Cost using SAP and other MIS tools.
• Identify material, labour, machine, overhead, subcontracting and purchase price variances.
• Prepare monthly variance reports and recommend corrective actions.

5. Cost Reduction

• Identify opportunities for material optimisation, process improvement, alternate sourcing and make-or-buy decisions.
• Support Engineering, Purchase and Production teams in achieving cost reduction targets.
• Conduct should-cost and value engineering analysis for major components.

6. Purchase & Vendor Costing

• Analyse supplier quotations and component pricing.
• Support Purchase in vendor negotiations.
• Benchmark raw material and bought-out component costs.
• Evaluate vendor price increases and their impact on product profitability.

7. Sales & Pricing Support

• Provide accurate costing inputs for customer quotations, tenders, customised rigs and new product enquiries.
• Calculate expected margins and contribution.
• Support Sales and Management during commercial negotiations.

8. Product Profitability & MIS

• Prepare model-wise, product-wise and customer-wise profitability analysis.
• Identify low-margin products and recommend pricing or cost improvement actions.
• Prepare management dashboards covering product cost, variance, profitability and cost reduction.

Candidate Profile

• 812 years of experience in Product Costing / Cost Accounting / Manufacturing Finance / Commercial.
• Experience in Heavy Engineering, Drilling Rigs, Mining Equipment, Construction Equipment, Industrial Machinery or Automotive Manufacturing preferred.
• Strong SAP knowledge is mandatory/preferred, particularly SAP CO/Product Costing (CO-PC), with working knowledge of SAP MM and PP.
• Strong knowledge of BOM, standard costing, variance analysis and manufacturing processes.
• Good understanding of machining, fabrication, welding, assembly and bought-out components.
• Advanced MS Excel and MIS skills.
• Strong analytical, commercial and problem-solving skills.
• Experience coordinating with Engineering, Purchase, Production, PPC, Sales and Finance.

Qualification

• CMA / ICWA / CA / MBA Finance preferred.
• B.E./B.Tech in Mechanical / Production with strong product costing experience can also be considered.

Key KPIs

• Product Costing Accuracy
• SAP Costing Accuracy
• Standard vs. Actual Cost Variance
• Cost Reduction / Savings
• Product Gross Margin
• BOM & Routing Cost Accuracy
• Purchase Price Variance
• Manufacturing Cost Variance
• Costing Turnaround Time
• Product Profitability
• Value Engineering Savings

Ideal Candidate

A hands-on Product Costing professional with 8–12 years of experience who has strong SAP Product Costing / CO-PC knowledge and can understand the complete cost structure of Drilling Rigs and Heavy Engineering products, from raw materials and components through fabrication, machining, hydraulics, assembly, testing and final delivery.

The candidate should be capable of converting detailed manufacturing data into accurate SAP-based product costing, variance analysis, pricing support and profitability improvement recommendations.