Industrial Equipment, Machinery & Capital Goods worked example

Machine BOM Cost Variance at 86% affected project share: a worked example

This scenario runs the machine bom cost variance calculation on the strong side: 86% affected project share, with every other input held at its documented default. Use it when purchased components, fabricated parts, drives, motors, controls, or supplier changes move actual cost away from the quoted BOM.

The inputs for this scenario

  • Affected BOM line count: 86 lines (unchanged)
  • Average cost variance per BOM line: 420 $ / line (unchanged)
  • Affected project share: 86 % (raised for this scenario; the documented default is 75)
  • Fixed sourcing and engineering review cost: 6,500 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable machine BOM cost variance = affected BOM line count × average cost variance per BOM line × affected project share) to the inputs above produces each figure below.
  • At this operating point the engine returns 37,563 $ for total machine bom cost variance, the number this scenario is built around.
  • At this operating point the engine returns 437 $ / line for average cost variance per bom line.
  • At this operating point the engine returns 31,063 $ for variable machine bom cost variance.
  • At this operating point the engine returns 6,500 $ for fixed sourcing and engineering review cost.

How this compares with the baseline

  • Against the tool's baseline example, where affected project share sits at 75% and the headline result is 33,590 $, this scenario comes in 11.83% above the baseline at 37,563 $.
  • Use it during cost-down reviews, ECN impact assessments, or quote re-validation when component prices or specifications shift across a machine's BOM. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Total machine BOM cost variance: 37,563 $ (headline result)
  • Average cost variance per BOM line: 437 $ / line
  • Variable machine BOM cost variance: 31,063 $
  • Fixed sourcing and engineering review cost: 6,500 $

Run it with your numbers

  • Every input above is editable in the live Machine BOM Cost Variance calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.