Cost Analysis & Estimation

Understanding your needs

Cost Analysis & Estimation

Cost estimation is one of the vital parts of the project and organization and Evercon is having the Enterprise Resource Planning (ERP) system wherein the costings of the raw material, outsource part, sub assembly and assembly man-hour, machine hours and direct and indirect costs are available and can extracted for the project and Service costing and estimation.

Evercon has experienced personnel regarding estimation of complete product to verify include transportation, logistics and co-ordination with entire supply chain for sourcing, packaging and each and every cost incurred checkpoints.

Evercon understands the customer budget constraints and brings the proposal quotation in such an optimized way that it will satisfy the customer as well as business revenue can also be balanced with complete quality proven supply.

The key points of Evercon regarding costing and estimation –

ERP system
Integrated Supply Chain
Experienced Estimators
Optimized product services
Price negotiation and Consulting
100% In-house capacity of manufacturing

What is Cost Estimation?

When developing a business plan for a new or existing company, product or project, planners typically make cost estimates in order to assess whether revenues/benefits will cover costs (see cost-benefit analysis).
Cost-plus pricing is where the price equals cost plus a percentage of overhead or profit margin. In business economics, the profitability of a trade or sales prospect relies on the ability of an enterprise to sustain market prices that cover all costs and leave a surplus for owner interest, as expressed by:

Profit = Revenue – Costs

What are Cost estimation models?

Cost estimation models are mathematical algorithms or parametric equations used to estimate the costs of a product or project. The results of the models are typically necessary to obtain approval to proceed, and are factored into business plans, budgets, and other financial planning and tracking mechanisms.

These algorithms were originally performed manually but now are almost universally computerized. They may be standardized (available in published texts or purchased commercially) or proprietary, depending on the type of business, product, or project in question. Simple models may use standard spreadsheet products.

Models typically function through the input of parameters that describe the attributes of the product or project in question, and possibly physical resource requirements. The model then provides as output various resources requirements in cost and time. Some models concentrate only on estimating project costs (often a single monetary value). Little attention has been given to the development of models for estimating the number of resources needed for the different elements that comprise a project.

Evercon considers cost-benefit analysis as a key factor for product customization. Cost analysis helps Evercon to optimize the conceptual products and services to their best within the quality acceptance criteria and help to draw the chart of ingredients applicable for the manufacturing of the product and decision making.

Cost-benefit analysis helps Evercon for –

Decision making
Comparison of the raw material cost hikes in the sequential business years
Stakeholder engagements
To understand the targeted revenue of the business year
To prepare the forecast budget
To analyze the potential profit make

Journey of Growth and Achievement

Evercon has experienced great growth over the years, but we’ve strived to maintain a family atmosphere where employees can thrive and succeed. Without a doubt, the people behind Evercon are the cornerstone of our company’s success.