Product Cost Engineer I

Komatsu; Peoria (IL); On-site; USD 67,400 - 84,500; Full time

Benefits offered by this job

Health benefits

401k and employee savings

Employee time off

Job summary

Komatsu in Peoria, Illinois is seeking a Product Cost Engineer I to develop data-driven cost models and drive cost reductions across the product lifecycle. The role involves collaborating with various departments and requires a bachelor's degree in engineering and relevant experience.

The ideal candidate has strong analytical skills and knowledge of manufacturing processes. The position offers a competitive salary and comprehensive benefits package including health benefits, 401k, and employee assistance programs.

Qualifications

• Bachelor’s degree in engineering or equivalent experience.
• 2+ years of experience in cost engineering or related roles.
• Strong analytical skills with the ability to build cost models in Excel.

Responsibilities

• Develop and maintain detailed product cost models.
• Perform should-cost analyses for new designs and decisions.
• Support Value Engineering and continuous improvement initiatives.

Skills

Analytical skills

Communication skills

Knowledge of manufacturing processes

Education

Bachelor’s degree in engineering

Tools

ERP systems (SAP, Oracle, etc.)

Power BI

Job description

Product Cost Engineer I – Peoria, Illinois, USA (Onsite Position)

Job Overview

The Product Cost Engineer partners with Engineering, Manufacturing, Supply Chain, and Finance to develop accurate, data‑driven product cost models and drive cost reduction across the product lifecycle. This role owns costed Bills of Material (BOMs) and routings, performs should‑cost and variance analyses, and supports design‑to‑cost, sourcing, and continuous improvement initiatives. The position provides cost transparency and structured analysis that enables fact‑based decision‑making across product development, operations, and procurement.

Key Job Responsibilities

• Develop, validate, and maintain detailed product cost models including material, labor, overhead, scrap/yield, freight, tooling, and outside processing.
• Create and maintain accurate costed Bills of Material (BOMs) and manufacturing routings; ensure alignment with ERP/MRP master data.
• Perform bottoms‑up and should‑cost analyses for new designs, supplier quotes, and make/buy decisions.
• Evaluate alternative design and manufacturing scenarios to identify the most cost‑effective solutions.
• Identify key cost drivers and partner with Engineering and Manufacturing to recommend design or process improvements.
• Support Value Engineering and continuous improvement initiatives with structured cost breakdowns.
• Track cost savings projects, document assumptions, and report realized results.
• Analyze cost variances (PPV, material usage, labor efficiency, overhead absorption).
• Partner with Operations and Supply Chain to identify root causes and implement corrective actions.
• Provide reporting and analysis to support informed decision‑making at multiple organizational levels.
• Provide costing support for RFQs, New Product Introduction (NPI), and Engineering Change Orders (ECO/ECN).
• Assess tooling and capital expenditure impacts associated with product changes.
• Ensure costing assumptions are documented, traceable, and audit‑ready.
• Collaborate with Supply Chain on supplier negotiations using fact‑based cost breakdowns.
• Validate internal and supplier lead times to ensure ERP accuracy and planning reliability.
• Support development and standardization of costing methodologies and organizational controls.
• Improve ERP data integrity related to costed BOMs, routings, and planning parameters.
• Partner across Engineering, Manufacturing, Procurement, and Finance to improve overall operational effectiveness.

Qualifications / Requirements

• Bachelor’s degree in engineering (Mechanical, Industrial, Manufacturing, or related field) or equivalent experience.
• 2+ years of experience in cost engineering, product costing, manufacturing engineering, or related roles in a manufacturing environment.
• Working knowledge of manufacturing processes (machining, welding/fabrication, casting/forging, assembly, etc.).
• Strong analytical skills with the ability to build and clearly communicate cost models in Excel.
• Experience with ERP systems (SAP, Oracle, JD Edwards, Dynamics, etc.) and costed BOM/routing structures.
• Strong written and verbal communication skills appropriate for all levels of the organization.

Additional Information

• Experience with should‑cost tools, labor standards, or time studies.
• Familiarity with standard costing and variance analysis.
• Experience supporting quoting/NPI workflows and change control processes.
• Basic understanding of finance concepts including margin, absorption, and inventory valuation.
• Experience with Power BI or similar reporting tools.

Hiring Range

At Komatsu, your base pay is one part of your total compensation package. This role pays $67,400 - $84,500. The actual offer will consider a wide range of factors, including experience and location.

Company Benefits

• Health benefits: Medical, dental, vision, HSA, wellness programs, etc.
• 401k and/or employee savings programs
• Employee time off (vacation and designated holidays)
• Employee and family assistance programs
• Disability benefits
• Life insurance
• Employee learning and development programs

EEO Statement

Komatsu is an Equal Opportunity Workplace and an affirmative action employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or protected veteran status.