The Same Part Can Be Made in Different Ways
In off-highway manufacturing, the same part can be made using different combinations of processes depending on the plant, available machinery, tooling setup, and batch size. A gearbox housing might be cast in one case or machined from solid in another. A frame may be fabricated from plate in one plant or assembled from cast modules in another. There is no single fixed path to production.
This variability makes it impossible to use a templated costing approach. Tools that rely on predefined routings or generic formulas do not capture how the part is actually made. Every operation sequence must be built from real manufacturing logic — which Excel, static BOM tools, or high-level reports cannot replicate.
Production Volume Drives Cost Behavior
Not all off highway parts are built in small quantities. Common components like housings or transmissions may run in high daily volumes, while others such as boom arms, brackets, or model specific hydraulics are produced in smaller batches. At lower volumes, setup time, fixture cost, and overhead absorption start to dominate cost.
Many costing tools assume stable, high volume production where cycle time and material drive pricing. But off highway programs often combine both scales, and unless costing accounts for volume effects, the output remains disconnected from how cost actually behaves in production.
Region and Plant-Level Inputs Matter
The cost of the same part changes drastically depending on where it is made. Hourly wages, energy tariffs, machine depreciation, indirect labour ratios, and even downtime norms vary by country and plant. A housing machined in Europe does not cost the same as one machined in India, even if the process steps are identical.
Most tools either apply standard rates or depend on user inputs that rarely get updated. Without region-specific data for each process and operation, even a detailed cost structure becomes disconnected from sourcing reality.
Most Off-Highway Parts Involve More Than One Process
Off-highway parts are often built through a mix of casting, welding, machining, painting, and assembly — sometimes all in the same component. For example, a bracket may start as a forged blank, then be machined, then welded into a larger structure, then painted and tested. Each step adds cost in a different way.
Spreadsheets and BOM-based systems cannot track which operation adds how much value, or how scrap, rework, or tool life affect total cost. Every process step must be defined, measured, and costed. Without this granularity, there is no way to know what to challenge, what to optimise, or what to negotiate.
PDFs and Excel Files Cannot Handle Changing Assumptions
Costing in off highway programs is not a one time exercise. As designs evolve, sourcing regions shift, and suppliers change, the underlying assumptions in a cost model must be updated. A single quote validation or benchmark may help in the short term, but it cannot support long term program decisions.
Consulting reports are usually shared as static PDFs or Excel summaries. They are not built for reuse, simulation, or adjustment. Once any design or rate input changes, the report becomes obsolete, and teams are forced to start over. Without a structured and editable approach, costing quickly becomes disconnected from the program it was meant to support.
Operation wise costing for every part
Verified Inputs Based on Region, Plant, and Process
ASI Engineering configures every cost model inside xcPEP using verified data pulled directly from xcPROC. This includes region-specific values for raw materials, machine hour rates, and labour costs, as well as plant-level parameters such as setup time, scrap rates, indirect labour, and machine availability.
Cycle time and operation-specific inputs are not assumed — they are mapped based on real equipment and process profiles from the selected plant or geography. This level of detail ensures that a part made in India, Brazil, or Europe is costed using the actual rates and production logic of that location. No external rate sheets or general averages are used. All data is structured, validated, and traceable.
In depth costing of mechanical parts
ASI Engineering builds cost models for structural and mechanical components like arms, brackets, mounts, frames, and carriers. Each part is analyzed for material type, process sequence, and plant-specific production details. Operations such as flame cutting, plate bending, jig welding, rough and finish machining, and painting are mapped precisely to reflect shop floor conditions
Massive library of cost models
xcPEP maintains a structured collection of part-level cost models for off-highway systems, created by ASI Engineering Team These models reflect real production logic and can be adapted for variants or similar platforms.
Run What If Scenarios for Volume, Region, or Process Changes
ASI Engineering uses xcPEP to simulate real world cost changes without rebuilding the model. Whether switching from a European to an Indian supplier, changing batch size from 3000 to 500, or replacing machining with fabrication, the model updates automatically.
Inputs like material rates, machine availability, labour cost, and overhead structure adjust based on the selected geography or production method. This helps sourcing and engineering teams compare options quickly and understand the cost impact of each change before committing.
Casting
Sand Casting
- Green Sand Casting
- Resin Sand Casting
- Shell Moulding
- Manual Core Assembly
Die Casting
- Gravity Die Casting
- High-Pressure Die Casting (HPDC)
- Low-Pressure Die Casting (LPDC)
- Trimming & Degating
Shell Mould Casting
- Precision sand shell molding
- Used for control arms and brake parts
- Better dimensional accuracy
Investment Casting
- Lost wax process
- Used for small complex parts
- Thin walls & fine features
Centrifugal Casting
- Rotational casting for cylinders
- Common for sleeves and liners
- High material density
Permanent Mold Casting
- Reusable steel molds
- Used for aluminum hubs and mounts
- Higher surface finish than sand
CNC Machining
Turning & Facing
- Precision Turning
- Shoulder Facing
- Grooving & Parting
- Live Tooling
Milling & Drilling
- 3-Axis Milling
- 5-Axis Milling
- Through-Coolant Drilling
- Thread Tapping
Boring & Finishing
- Boring Bar Operations
- Reaming
- Surface Grinding
- Dimensional Inspection
Welding & Fabrication
Cutting
- Laser Cutting
- Plasma Cutting
- Oxy-Fuel Cutting
- Waterjet Cutting
Forming
- Press Brake Bending
- Tube Bending
- Roll Forming
- Swaging
Welding
- MIG/MAG Welding
- TIG Welding
- Manual Arc Welding
- Robotic Welding
Finishing & Fixtures
- Weld Fixture Setup
- Grinding & Surface Prep
- Leak Testing
- Assembly Fit Checks
Sheet Metal Forming
Blanking & Shearing
- Hydraulic Shearing
- NC/CNC Blanking
- Progressive Die Blanking
- Laser Sheet Cutting
Stamping Operations
- Deep Drawing
- Piercing & Notching
- Embossing
- Coining
Bending & Rolling
- Press Brake Bending
- Roll Bending
- Flanging
- V-Die Bending
Tooling & Setup
- Die Setup & Maintenance
- Jig & Fixture Loading
- Tool Changeover
- Batch Setup Time
Rubber Moulding
Compression Moulding
- Hydraulic Compression
- Transfer Moulding
- Preformed Blank Moulding
- Closed-Mold Curing
Extrusion Moulding
- Hot Feed Extrusion
- Cold Feed Extrusion
- Steam Vulcanization
- Autoclave Curing
Plastic Injection Moulding
Hot Runner Tooling
- Valve-Gate Hot Runners
- Heated Manifold Systems
- Sequential Valve Control
- Multi-Cavity Dies
Cold Runner & Inserts
- Cold Runner Tooling
- Insert Moulding
- Overmoulding
- Unscrewing Mechanisms
Electricals & Harnesses
Wiring Harnesses
- Cable Cutting & Stripping
- Terminal Crimping
- Connector Assembly
- Harness Wrapping
PCB & Control Modules
- PCB Assembly
- Component Soldering
- Potting & Encapsulation
- Functional Testing
Switches & Indicators
- Actuator Assembly
- LED Integration
- Panel Mounting
- Sealing & Potting
Electrical QC
- Continuity & Insulation Tests
- Signal Mapping
- Connector Pull Tests
- Visual & Electrical Inspection
AI-Based Component Identification for PCBs
Even in heavy equipment, PCBs and electronic subassemblies are used for control systems, ECUs, and diagnostic modules. Identifying components manually is time-consuming and error-prone, especially in multi-layer boards. ASI uses a calibrated imaging system to scan each board and automatically classify components such as ICs, resistors, and connectors. Each part is tagged digitally, and the output BoM is structured for cost modeling inside xcPEP using the xcPROC database.
Bounding Box Dimension Capture System
Parts like fabricated loader arms, cast axle housings, fuel tanks, and hydraulic reservoirs often have irregular shapes that are hard to measure accurately. Caliper or tape-based measurement introduces significant error at scale. ASI uses a contactless laser setup to capture full bounding box dimensions of large components. The part is positioned inside a reference enclosure and scanned for length, width, and height. These dimensions feed directly into xcPEP to estimate blank size, packaging, or raw material weight.
Projected Area Capture System
Many off-highway components such as side panels, battery covers, and guard plates require projected area to estimate blank weight, laser cutting time, or fabrication cost. ASI automates this by placing the part against a backlit grid and capturing its silhouette using a calibrated camera. The area is calculated in real dimensions and pushed to xcPEP to support costing for stamping, laser cutting, or CNC nesting.
Target Costing During Product Development
During early program phases, ASI Engineering estimates cost based on drawing or CAD model. This helps design teams assess feasibility against cost targets before locking design decisions.
Competitor Product Benchmarking
ASI Engineering tears down and costs competitor assemblies to identify cost structure differences. These models are used by commercial and leadership teams to understand sourcing choices and pricing strategy of other OEMs.
Localisation Feasibility Analysis
ASI Engineering uses xcPEP to simulate how cost behaves when production is shifted across regions. This allows OEMs to compare Indian, European, or Latin American sourcing options without reworking the entire model.
Alternate Supplier Identification
Where single sourcing creates risk, ASI Engineering performs should costing to identify lower-cost, viable alternatives. These insights help sourcing teams pursue cost down opportunities without compromising technical integrity.
Scenario Costing for Design and Volume Shifts
Whether the question is design simplification, volume ramp up, or process change, ASI Engineering uses xcPEP to simulate cost impact quickly. These what-if scenarios help teams plan changes without losing cost visibility.
Column Title
Spreadsheets
BOM based tools
Management Consultants
xcPEP + ASI Engineering
Real manufacturing process logic
Plant-specific input configuration
Region-specific cost rates
Transparent, repeatable costing
Operation-level cost modeling
Live scenario simulation (volume, region)
Digital reuse across parts and programs
Cloud-based access and collaboration
Continuous engineering support
In-House Cost Lab Setup
xcPEP was deployed to build a cost lab inside a global construction equipment OEM, supporting parts like loader arms, axle housings, and fabricated enclosures. ASI Engineering configured the platform, migrated legacy Excel cost models, and structured the client’s BOM hierarchy. A core team was trained to run new part costing, quote validation, and alternate supplier analysis directly inside xcPEP. Today, the OEM independently operates the lab, with ASI providing database updates and support.
Should Costing for New Part Development
xcPEP was deployed by an off-highway equipment manufacturer to support should costing during early part development. ASI Engineering worked with engineering and sourcing teams to cost key components such as loader arms, axle housings, and structural weldments before final supplier quotes were received.
Cost estimates were built using real manufacturing steps and inputs for region-specific machine, labour, and material rates. This helped define internal cost targets early and reduced reliance on supplier quotes or external benchmarks.
Fact Packs for Supplier Negotiations
xcPEP was deployed by an off-highway OEM to support cost-backed supplier negotiations. ASI Engineering built structured cost references for castings, weldments, and machined parts based on actual production operations such as pattern making, rough and finish machining, fixture setup, and painting.
The results were compiled into negotiation-ready fact packs, helping sourcing teams validate supplier quotes, identify gaps, and negotiate with clear visibility into cost drivers and process assumptions.
Competitor Cost Benchmarking
xcPEP was used to benchmark the cost of a competitor’s tractor for a global off-highway OEM. ASI Engineering performed a structured teardown and built detailed cost models for critical systems such as axle housings, transmission cases, and hydraulic components, capturing inputs on casting quality, machining cycles, welding effort, and paint application.
The result was a structured cost comparison at part and system level, helping the customer identify cost gaps, design inefficiencies, and opportunities for sourcing or value engineering improvement.
