How is material cost per part calculated in DFM Concurrent Costing?

In order to determine the cost of material for one part, the cost of all materials used in manufacturing the part are added together. In most of the manufacturing processes, more material is used than what ends up in the finished part. In casting processes, for example, material is required for the runner system and sprue. In forging, excess material is contained within the flash generated on the part during manufacture. The cost of this excess material is included in the total material cost for the part. This material is generally trimmed from the part and recovered as scrap and where appropriate, the value of this scrap material is subtracted from the total material cost. Also included, are the materials used for constructing expendable patterns and molds for processes like investment and sand casting.

The cost of material per unit weight, stored in the DFM Concurrent Costing material library, has been gathered from material suppliers in the United States. This cost data has been taken from published data and, where possible, verified with clients. Of course, no standard database of material costs takes into consideration variation in purchase quantities, negotiating power, or market fluctuations. The default database for material costs included in the software is useful for analysis comparisons weighing design alternatives. You may need to edit this database to align material cost estimates with your specific costs if you are verifying quotations or estimating overseas prices.