Production Costing Engineer

Position:
Production Costing Engineer (with Finance Background)

Job Summary
The Production Costing Engineer is responsible for developing, maintaining, and analyzing accurate cost structures for manufacturing products, including server racks, cabinets, enclosures, and related data center infrastructure. The role ensures that material, labor, and overhead costs are accurately captured to support competitive pricing, profitability, and continuous improvement initiatives.

This position works closely with Engineering, Production, Procurement, and Finance teams to drive cost transparency, operational efficiency, and data-driven decision-making across manufacturing operations.

Key Responsibilities

Production Costing & Analysis

• Prepare and analyze product cost estimates based on Bills of Materials (BOM), routing, labor, and overhead.
• Review manufacturing variances and identify root causes related to material usage, labor efficiency, and machine downtime.
• Conduct cost simulations for new products, engineering design changes, and process improvements.
• Maintain and update standard costing data in the ERP system.

Financial Reporting & Control

• Support month-end closing activities related to production costing.
• Reconcile actual production costs against standard costs and highlight variances.
• Prepare cost reports, margin analysis, and profitability studies for management review.
• Ensure compliance with internal controls, financial policies, and audit requirements.

Production & Process Support

• Collaborate with Production, Engineering, and Supply Chain teams to collect accurate cost and operational data.
• Evaluate manufacturing processes to identify cost-saving and efficiency improvement opportunities.
• Monitor material consumption, scrap, and wastage levels to ensure accurate cost reporting.
• Participate in productivity improvement initiatives such as Lean, Kaizen, or Six Sigma projects.

Budgeting & Forecasting

• Assist in annual budgeting and forecasting for production costs, overheads, and capital expenditure.
• Provide inputs on cost assumptions, labor requirements, and production efficiency targets.
• Evaluate the financial impact of process improvements and production changes.

ERP & Data Management

• Maintain product master data including BOMs, routing, cost centers, labor rates, and overhead absorption.
• Validate production transactions and ensure accuracy of data within the ERP system.
• Generate costing, variance, and production efficiency reports using ERP and BI tools.

Cross-Functional Collaboration

• Work closely with Finance, Production, Engineering, and Procurement teams to ensure accurate and consistent costing.
• Support New Product Introduction (NPI) costing and project feasibility studies.
• Provide costing guidance or basic financial training to non-finance stakeholders when required.

Requirements

• Bachelor's Degree in Engineering, Finance, Accounting, or a related field.
• 2–5 years of experience in manufacturing costing, production engineering, or cost accounting.
• Strong analytical, numerical, and problem-solving skills.
• Hands-on experience with ERP systems (SAP, Oracle, BAAN, or equivalent).
• Solid understanding of manufacturing processes, BOM structures, routing, and cost accounting principles.
• Proficiency in Microsoft Excel and data analysis tools.
• Ability to work independently while collaborating effectively across multiple functions.

Preferred Skills (Optional)

• Experience with Lean Manufacturing, cost optimization, or continuous improvement initiatives.
• Ability to interpret CAD drawings and manage engineering change impacts on cost.
• Knowledge of Design-for-Cost (DfC) and Design-for-Manufacturing (DfM) principles.
• Familiarity with ISO 9001 or other Quality Management Systems (QMS).
• Experience using BI tools and developing advanced costing or performance dashboards.