Bengaluru, India  ·  Serving manufacturers globally +91 96329 02245 +91 99867 82781 consulting@kleancost.in

Product Cost Management for Manufacturers

Every product carries cost it does not need.

Klean Cost is a product cost management consultancy. We turn your engineering BOM into a governed cost system — every line carrying a current cost and a target cost — then run the programs that close the gap and keep it closed. Evidence-led, quality-protected, and free of enterprise software commitments.

Our operating rule: we don't sell reports. We solve the problem in front of us, and we show our working.

30%
BOM cost reduction delivered on a clean-energy product platform
$2.5M
Validated annual savings led at a global aerospace OEM
20+ yrs
Combined experience across aerospace, energy and enterprise AI
2 weeks
To a fact-based answer on your first part, quote or BOM

The Problems We Solve

Leadership teams come to us with questions their organisations cannot answer alone.

Cost problems rarely announce themselves. They arrive as questions in a monthly review — and stay unanswered because the evidence sits scattered across design, sourcing and operations. These are the ones we hear most.

Our supplier says raw material went up 18%. Did it?

Material indices move — but rarely by what the quote letter claims, and rarely across the whole part price. We separate genuine input inflation from opportunistic re-pricing.

We answer with an indexed cost model, not an opinion.

Why is our product 20% costlier than the competitor's?

The answer usually sits inside the two products, not the two price lists. Teardown comparison shows where their design spends less to do the same job.

We answer with side-by-side teardown evidence.

Which of these three quotes is actually fair?

Lowest price is not the same as right price — the cheapest quote often carries the highest total cost in rejections, delays and tooling surprises.

We answer with a should-cost range and a negotiation agenda.

Can we take cost out without touching quality?

Yes — if you remove cost that isn't buying function. Value engineering separates what the customer pays for from what your history put there.

We answer with function-level cost analysis, quality protected.

Our margin target needs 4% off this product. Where?

A target without a map produces across-the-board pressure and supplier fatigue. A costed BOM shows exactly which parts, processes and decisions hold the money.

We answer with a ranked, owner-assigned savings roadmap.

We had forty cost ideas last year. Why did three reach production?

Ideas die between the workshop and the drawing change. Savings need owners, validation gates and an executive review rhythm — the same discipline as any program.

We answer with governance that carries ideas to implementation.

Industry Perspectives

Cost hides differently in every industry. So does value.

A foundry-heavy valve maker, a tiered automotive supplier and a capital-equipment builder do not share the same cost problem — and should not be given the same answer. We work in the economics of your industry, in your language.

Automotive & EV component suppliers

Tier-1 and Tier-2 suppliers under annual price-down commitments and raw-material pass-through disputes.

Where cost hides

  • Customer price-down commitments signed without knowing which parts can actually give the money back
  • Raw-material escalation claims accepted at face value because nobody can model the counter-position
  • Legacy designs carried across programs — yesterday's tolerances and part counts priced into today's product

Where value is recovered

  • Should-cost models for stampings, machined parts, plastics and assemblies that hold up in customer and supplier negotiations
  • VAVE workshops that consolidate parts and relax non-functional tolerances — with quality sign-off built in
  • Indexed material models that settle escalation claims in minutes, not negotiation rounds
The Economics, Plainly
1 saved × 200,000 units

At automotive volumes, a single unit of currency removed from one part returns two hundred thousand to margin — every year, for the life of the program. In ₹, $ or €, the arithmetic is the same: volume turns small engineering decisions into large financial ones.


Typical engagement entry: one part family under customer price-down pressure.

Industrial machinery & capital equipment

Low-volume, high-mix builders where every machine's margin is decided by fabrication and bought-out choices.

Where cost hides

  • Weldment-heavy structures designed for strength margins the application never sees
  • Bought-out content priced by relationship history rather than a cost basis — often 60–70% of machine cost
  • Engineering-to-order habits that re-draw, re-quote and re-tool what a configured platform could standardise

Where value is recovered

  • Design-to-cost reviews on frames, guards and enclosures — casting vs. fabrication vs. modular trade-offs made explicit
  • Should-cost on the top bought-out items, converting the largest spend block into a negotiable one
  • Variant and option rationalisation that protects sales flexibility while cutting engineering churn
The Economics, Plainly
2–4% of machine cost

On capital equipment, cost work compounds per unit sold. Recovering even a few percent of machine cost frequently doubles the contribution margin of a competitively bid order — in any market, in any currency.


Typical engagement entry: teardown-style review of one machine's costed BOM.

Pumps, valves & casting-intensive products

Flow-control and rotating-equipment makers whose cost sits in foundries, machine shops and material grades.

Where cost hides

  • Casting prices quoted per kilogram, hiding yield, rejection and fettling assumptions the buyer never sees
  • Material grades specified above the duty condition — exotic alloys where the service demands workhorse grades
  • Machining allowances and cycle times inherited from old process sheets nobody has re-timed

Where value is recovered

  • Casting should-cost that models yield, rejection and melt economics — turning per-kg pricing into a real conversation
  • Material rationalisation reviews with metallurgical justification, not just a cheaper grade
  • Machining cycle-time models that identify which operations pay for better fixturing or consolidated setups
The Economics, Plainly
18–30% casting gap

When casting quotes are tested against melt, yield and process economics, the gap between quoted and defensible cost routinely lands in this range — recoverable through negotiation or re-sourcing.


Typical engagement entry: should-cost on your five highest-spend castings.

Electrical equipment & panel builders

Switchgear, panel and enclosure makers exposed to copper and steel volatility on thin integration margins.

Where cost hides

  • Copper and steel volatility passed through by suppliers on the way up — and rarely on the way down
  • Sheet-metal enclosures over-built in gauge, welds and finishing beyond the protection class required
  • Panel layouts that consume labour hours in wiring and testing which layout discipline could remove

Where value is recovered

  • Commodity-indexed pricing frameworks so metal movements adjust both directions, automatically
  • Enclosure design-to-cost: gauge, forming and joining choices tested against the actual IP and structural need
  • Standardised busbar, wiring and layout practices that compress assembly hours per panel
The Economics, Plainly
Metal is 50–65% of cost

When more than half the product is traded commodity, cost control is a pricing-mechanism problem as much as a design one. Indexation discipline alone often recovers several margin points.


Typical engagement entry: cost model for one panel family plus its supplier pricing mechanism.

Clean energy & new product platforms

Electrolysers, storage, EV infrastructure and other products racing down a cost curve to reach viable unit economics.

Where cost hides

  • Prototype-era design choices frozen into production BOMs because the launch schedule outran cost review
  • Cost targets expressed per kilowatt or per unit at the top — but never deployed to parts, suppliers and owners
  • Single-source components priced without competition because qualification effort was front-loaded on speed

Where value is recovered

  • Cost-down roadmaps with maturity gates — from idea through validation to engineering change — tracked to realisation
  • Target costing deployed down the BOM so every module owner knows their number
  • Should-cost-led second-sourcing on the components that dominate the platform's cost curve
The Economics, Plainly
30% platform cost-down

Our founding team led a clean-energy platform's BOM down 30% through governed, gate-tracked cost projects — the difference between a subsidised product and a commercially viable one.


Typical engagement entry: cost baseline and target deployment for one product platform.

Precision & contract manufacturers

Machine shops, fabricators and EMS providers whose growth depends on quoting fast, winning right and protecting margin.

Where cost hides

  • Quotes built on gut feel and machine-hour habit — winning unprofitable work and losing profitable work in the same month
  • Customer negotiations entered without knowing your own defensible cost floor
  • Estimating knowledge held in one or two heads, making quote quality a personnel risk

Where value is recovered

  • A structured quoting engine — rate cards, cycle models and overhead logic your estimators apply consistently
  • Win/loss cost analysis that shows which work is worth fighting for and which quotes to decline
  • Cost transparency you can selectively share — turning open-book customer demands into a strength
The Economics, Plainly
Quote in days, not weeks

A disciplined cost engine changes the commercial position twice: faster quotes win time-sensitive orders, and a known cost floor stops the discounting that silently erodes shop margin.


Typical engagement entry: cost-model build for your top recurring part families.

What We Do

One flagship discipline, four supporting practices. One outcome: cost you can defend, value you can prove.

Product Cost Management is the operating system; should-costing, teardown, value engineering and program execution are the engines inside it. Most clients enter through a single part or quote and expand as the evidence accumulates.

PCM

Product Cost Management

Flagship · For leadership teams who want cost governed, not audited

We take ownership of your engineering BOM as a living cost system. Every line carries two numbers — what it costs today and what it must cost — kept current as engineering changes, supplier quotes and material indices move. On top of that baseline we deploy targets to owners, run the cost-reduction programs that close each gap, and forecast your cost roadmap quarter by quarter, so leadership always knows where product cost is heading, not just where it has been.

You receive: a governed, always-current costed BOM with current and target cost on every line, a forward cost forecast tied to your roadmap, and a monthly governance review reporting movement against target.

SC

Should-Cost & Clean-Sheet Modelling

For sourcing, RFQs & negotiations

We build the cost of a part from first principles — material, process route, cycle time, labour, machine rates, overheads, tooling and a fair margin — so you know what a quote should be before you receive it. Every assumption is documented and traceable; nothing arrives from a black box.

You receive: a defensible cost range, a driver-level gap analysis against quotes, and a negotiation agenda your buyers can walk in with.

TD

Teardown & Competitive Benchmarking

For product & design strategy

Physical evidence beats assumption. We disassemble your product, a supplier's, or a competitor's — and document the design, material, joining, assembly and manufacturability choices that explain cost and quality differences drawing by drawing.

You receive: a benchmark gap report and a prioritised list of design and sourcing actions, each with an engineering rationale.

VE

Value Analysis & Value Engineering

For products carrying legacy cost

We ask the discipline's oldest question — what does this part do, and what is that function worth? — across your product with your cross-functional team. Cost that isn't buying function becomes the target; performance, safety and manufacturability are constraints, never trades.

You receive: function-cost analysis, ranked redesign opportunities, and workshop-validated business cases ready for engineering change.

PX

Savings Program Execution & Analytics

For converting identified savings into realised margin

Savings ideas fail in the gap between the workshop and the drawing change. We run the execution engine: each project tracked through maturity gates from idea to validation to implemented change, engineering-change support through release, and analytics dashboards that report money, not activity — distinguishing identified, approved and realised at every review.

You receive: a gated savings portfolio, ECN support through implementation, and executive dashboards reporting validated impact against the PCM baseline.

How We Prove Cost

We put every unit of cost on the table — line by line, assumption by assumption.

This is the artefact at the centre of our work: a cost built from engineering first principles, set against the quote, with the gap decomposed into causes you can act on. It reads like a ledger because it is one — modelled in whichever currency your business runs on.

Exhibit 1 · Should-Cost Ledger

Machined aluminium housing — quote vs. engineering should-cost

Annual volume: 24,000 units
Basis: Al 6061-T6 · VMC route · regional rates
Cost elementCost / part¹Share
Direct material0.42 kg net + machining allowance, scrap credit applied 19822%
Primary machiningVMC, 14.0 min effective cycle at 1,150 / machine-hour 26830%
Secondary operations & finishingDeburr, wash, anodise (conversion cost) 748%
Direct labour & inspectionLoading, in-process checks, final inspection 526%
Factory overheads & SG&AApplied on conversion base, plant-size adjusted 16118%
Tooling & fixturing amortisationDedicated fixtures over contracted volume 384%
Fair supplier margin12% on cost — sustainable, not squeezed 9511%
Engineering should-cost 886100%
Supplier quote, as received 1,240
Gap to explain — the negotiation agenda 35429%
¹ Modelled in the client's currency — ₹, $, € or £; the engineering logic is identical everywhere. Figures illustrative of a typical engagement; every model is built on the client's drawings, volumes and regional rates. At 24,000 units per year, this single part's gap compounds to 8.5 million per year in whatever currency your P&L reads in.
Exhibit 2 · Governed Cost Roadmap

Product Cost Management — from current cost to board target

One product platform · 5 quarters
Each step: a gated project cluster
This is what PCM produces: not a one-time study, but a live roadmap. Every step is a cluster of owned projects tracked through maturity gates — idea, feasibility, validation, implemented change — and the BOM baseline updates as each one lands. Leadership sees the forecast move before the quarter closes. Modelled in the client's currency.
WHAT THE GAP IS NOT

A stick to beat suppliers with

A gap is a set of questions, not an accusation. Some of it is supplier margin; some is your design; some is a process assumption worth testing together. Good suppliers engage with this analysis — it makes the relationship more durable, not less.

WHERE THE GAP GOES

Into three kinds of action

Negotiate what pricing should concede. Re-engineer what design should release. Re-source only where the incumbent cannot close. The ledger tells you which lever each unit of cost belongs to.

HOW IT SCALES

From one part to a governed BOM

The same discipline, applied across your bill of materials, becomes Product Cost Management — every line with a current and target cost, a ranked savings pipeline with owners and gates, and a monthly number your CFO can audit.

How an Engagement Runs

We earn the next phase by delivering the current one.

No retainers before results. Each phase produces a standalone deliverable; you decide whether the evidence justifies continuing.

PHASE 01

Diagnostic

Two weeks · fixed scope · fixed fee

Bring us one part, one quote, or one product's BOM. We map where the money sits, test it against engineering cost logic, and identify the three levers most worth pulling.

Deliverable: diagnostic findings and a costed opportunity map — yours to act on with or without us.
PHASE 02

Pilot

Four to eight weeks · one product family

We execute the highest-value lever end to end — a should-cost negotiation pack, a teardown benchmark, or a value-engineering workshop — and validate the result with your engineering and quality teams.

Deliverable: implemented or implementation-ready savings, with the evidence trail behind every number.
PHASE 03

Program

Ongoing · entered only on proven value

We install cost management as an operating discipline: baselines, deployed targets, maturity-gated projects, engineering-change support, and an executive review that tracks realised savings.

Deliverable: a governed savings portfolio reporting validated impact, month after month.

On confidentiality: NDAs are executed before any drawing, BOM or quote is reviewed. Client engineering data is processed in our isolated environment — it is never uploaded to public AI tools, and it never trains anything.

The Firm

A problem-solving firm, built by people who have owned the number.

Klean Cost was founded on a simple observation: most manufacturers don't lack cost-reduction ideas — they lack the evidence, discipline and follow-through to convert them into margin. We built the firm to supply exactly that.

  1. We always solve problems.

    Every engagement begins with a written problem statement — never a service catalogue. If the problem changes mid-engagement, so does our work.

  2. Evidence before opinion.

    Recommendations rest on models, teardowns and data you can audit. If we can't show the working, we don't make the claim.

  3. Savings aren't real until production.

    We count validated, implemented impact — not workshop estimates. Our reporting distinguishes identified, approved and realised, and we stay for the last mile.

  4. Quality is a constraint, never a trade.

    Cost taken out at the expense of function, reliability or safety comes back with interest. Every action carries a quality gate.

  5. Your data stays yours.

    Isolated processing, no public AI tools, no third-party sharing, NDA before first drawing. Technology accelerates our analysis; it never touches your confidentiality.

Balakarthikeyan V S

Founding Partner · Cost & Value Engineering

Twelve years leading cost and value engineering across aerospace and clean energy — from should-cost and clean-sheet programs at a global aerospace OEM to a 30% platform cost-down at a clean-energy manufacturer. Selected for a top-3% global leadership program and elected its global chairperson.

Karthik M

Founding Partner · AI & Cost Analytics

A decade in enterprise technology, focused on building the secure analytical machinery behind the firm's work: proprietary cost models, commodity engines and leadership dashboards — engineered for speed, transparency and complete data isolation.

Start Here

Bring us one problem. We'll bring the evidence.

One part under margin pressure. One quote that doesn't feel right. One product losing on price. Send it across — we'll respond within two working days with how we'd approach it, what it would cost, and what you'd have in hand at the end.

Reaching the firm

Balakarthikeyan V S+91 96329 02245
Based inBengaluru, India
Working acrossGlobally — ₹ · $ · € · £
Confidentiality first: mutual NDA executed before any engineering data, drawing, BOM or commercial document is reviewed.