You are ready to begin building your cost model, or perhaps you are in the process of electing/upgrading your ERP software and want to plan through how it will support your cost model. 

Yesterday I bought a simple, gas-powered Craftsman lawnmower with a Briggs & Stratton engine. It wasn’t very fancy, it wasn’t self-propelled and it didn’t have a lot of “bells and whistles.” It did, however, happen to be exactly what I wanted – a basic workhorse lawnmower to cut grass at my daughter’s rental property.

High-temperature processes – such as those required to manufacture metal products – are very difficult to monitor, model and control.

In prior articles (December 2021 FORGE and February 2022 Industrial Heating), we discussed the reasons behind the importance of understanding margins (price minus cost) for the seller of any product or service. Your Cost Model is the framework for calculating costs.