case study
Automation of Manufacturing Cost Calculation
Necessary information /
Context / Client information
The pharmaceutical company Zentiva needed to significantly accelerate the process of calculating manufacturing costs for medicines, known as Cost of Goods Sold — COGS. This calculation is crucial when developing new formulations and modifying manufacturing processes.
COGS calculation is a highly complex process involving a large number of parameters, including raw materials, manufacturing steps, machine utilization, labor, and packaging. The traditional approach required manual analysis of these factors and was time-consuming.
How we solved the problem /
Solution /
DNAi developed an AI platform for estimating manufacturing costs, creating a digital model of the production process.
The system makes it possible to instantly evaluate the impact of changes in formulation, production process, or production volume. Users can simulate different manufacturing scenarios and immediately see their effect on total costs.
The platform provides a detailed overview of individual production steps and enables fast comparison of different manufacturing variants.
Used technologies /
Technologies /
The solution was deployed as an internal analytical platform using a combination of AI models and a digital model of the manufacturing process.
The system includes:
- regression models for estimating manufacturing costs
- pattern matching and extrapolation based on existing products
- a digital model of the manufacturing process, also known as a digital twin
- cost modeling of individual production steps
- consideration of inputs such as raw materials, machine time, labor, packaging, and overhead costs
Direct outcome /
RESULT /
The deployment of the solution brought a major acceleration in manufacturing cost calculation.
The solution delivered:
- COGS calculation reduced to just a few seconds
- less than 0.1% deviation compared to standard calculations for known products
- the ability to instantly analyze the impact of changes in formulation or manufacturing process
The platform also helped identify inconsistencies in the original cost calculation process.
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