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Description

Industrial Product Costing: Calculation, Analysis and Performance Measurement

Understand what a manufactured product truly costs and where performance losses occur

  • 2 days — 14 h
  • In-person or virtual
  • Foundation
  • Up to 6 participants

In a manufacturing environment, product cost is used to set prices, justify investment and decide between in-house production and subcontracting. Yet it often relies on outdated routings and inherited allocation keys. Scrap, changeovers and machine downtime remain outside the calculation even though they erode margin.

These two days start from the shop floor. Participants build a full product cost for a manufactured part, then identify actual resource consumption. They then connect the calculation to production indicators and set up performance monitoring that the workshop can genuinely use.

Learning objectives

  • Break down an industrial product cost cost centre by cost centre
  • Value materials, direct labour and machine time
  • Select cost drivers suited to each production centre
  • Include scrap and non-productive time in the calculation
  • Link product cost to the indicators tracked on the shop floor
  • Compare in-house manufacturing with subcontracting

What makes this programme different

A product cost built from raw material to finished goods on a single industrial case study followed across both days
Actual routings and times compared against theoretical data
A performance tracking dashboard designed to be displayed on the shop floor

Programme

1The components of cost

Break down before calculating

  • Material consumed and manufacturing waste
  • Direct labour and time actually spent
  • Machine costs, depreciation and energy
  • Indirect production and overhead costs

2Allocation and cost drivers

Assigning costs without arbitrary choices

  • Defining analysis centres consistent with the workshop layout
  • Selecting a cost driver representative of the activity
  • Treatment of fixed costs and under-utilisation
  • Full costing versus direct costing depending on the decision

3Variances and performance losses

Finding where the margin goes

  • Variance between routing time and actual time
  • Cost of scrap, rework and production changeovers
  • Impact of machine downtime and waiting time
  • Analysis of material price and consumption variances

4Managing industrial performance

Indicators that work on the shop floor

  • Yield, quality and lead-time indicators
  • Linking financial monitoring with production monitoring
  • How often standards should be updated
  • Presenting results back to manufacturing teams

Who is it for

Industrial management controllers as well as production, methods and procurement managers working on manufacturing costs.

Prerequisites

Familiarity with basic accounting concepts and with how a production workshop is organised.

Dates & locations

36 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.