What is preliminary costing in SAP PLM-PLC - Product Lifecycle Costing?

SAP Term: preliminary costing

• Component: PLM-PLC

• Component Name: Product Lifecycle Costing

• Description: The process of determining the planned costs for a product before production begins.

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• Key Concepts: 
  Preliminary costing is a process used in the Product Lifecycle Costing (PLM-PLC) component of SAP. It is used to estimate the cost of a product or service before it is actually produced. This process helps to identify potential cost savings and other opportunities for improvement before production begins.
  
  How to use it: 
  Preliminary costing can be used to estimate the cost of a product or service before it is actually produced. This process involves analyzing the cost of materials, labor, overhead, and other factors that may affect the cost of the product or service. The results of this analysis can then be used to identify potential cost savings and other opportunities for improvement before production begins.
  
  Tips & Tricks: 
  When using preliminary costing, it is important to consider all potential costs associated with the product or service. This includes not only the cost of materials and labor, but also overhead costs such as shipping, taxes, and other fees. Additionally, it is important to consider any potential risks associated with producing the product or service, such as quality control issues or delays in delivery.
  
  Related Information: 
  Preliminary costing is closely related to other processes in the Product Lifecycle Costing (PLM-PLC) component of SAP, such as material costing and activity-based costing. Additionally, preliminary costing can be used in conjunction with other processes such as budgeting and forecasting to help ensure that a product or service is produced at the lowest possible cost.