Raw Materials & Packaging Materials Assessment Engine
1. Production Batch Material Cost Assessment
Ingredients / Raw Materials / Material Inputs.
Batch Size: Quantity………………. Unit of Measurement……………..
Guidance Notes:
1. List materials in descending order of quantity or cost contribution. This helps quickly identify the most significant cost drivers.
2. Use the same material description that will appear in purchase records or product specifications.
3. Record the actual quantity consumed for one complete production batch.
4. The percentage column shows the relative contribution of each material to the total formulation.
5. Net Landing Cost should include all procurement-related expenses until the material reaches your factory.
6. Material Cost is calculated by multiplying the quantity consumed by the Net Landing Cost.
7. Use the Assessment & Remarks column to record quality grades, approved suppliers, seasonal variations or any observations that improve future purchasing decisions.
Standard Table For Raw Material Assessment;
| S. NO. | Item Name | Actual Raw Quantities in Kg Used in One Batch | Calculated as Percentage Quantity in Total 100 % | Net Landing Cost in INR of Material On Per Unit Basis | Material Cost Amount in INR For The Batch | Remarks |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
1. Item 1
2. Item 2
3. Item 3
4. Item 4
5. Item 5
6. Item 6
7. Item 7
Note: Add As Many More like 8,9,10…..as There are Items in any Finished Goods
| GRAND TOTAL | 100% |
Batch Yield of Finished Goods / Ready Product:
Quantity; ………………. Unit of Measurement; ……………..
Final Packing Size Recommended: …………………………..
Number of Packs in One Batch in Recommended Pack Size; ………
Total Cost of Material / Ingredients in One Pack; ………………….
Material Cost per Kilogram of Finished Product; …………………….
Remarks: ………………………………………………………………
NOTE: Suggested AI Prompt – Table 1.1 Raw Material Cost Assessment
Instructions to User
Attach the Hello Kisan Raw Material Cost Assessment Framework (after copying or downloading it from website) along with whatever information you already have about the food product.
This may include the product name, ingredient list, recipe, formulation, production batch size, purchase prices, supplier quotations, market prices or any other relevant information.
The information may be complete or incomplete.
Then submit the following prompt to your preferred AI assistant.
Don't worry if your information is incomplete. AI can often make reasonable assumptions and clearly identify where better information is required. As your knowledge improves, simply update the table and ask AI to recalculate the assessment.
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Draft AI Prompt
I am assuming AI can add inputs as an experienced Food Technologist, Food Processing Consultant, Procurement Specialist and Cost Accountant.
I am developing a cost assessment for a food product using the attached Hello Kisan Raw Material Cost Assessment Framework.
The information that I have supplied may be complete, partial or even approximate.
Wherever information is missing, kindly make practical and reasonable industry assumptions.
Clearly identify every assumption you make.
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PART 1 – Draft / Complete the Assessment Framework
Please complete the Hello Kisan Raw Material Assessment Table by:
1. Identifying all major ingredients required for the product.
2. Arranging them in descending order of quantity or cost contribution.
3. Estimating realistic quantities for one production batch.
4. Calculating the percentage contribution of each ingredient in the formulation.
5. Estimating reasonable Net Landing Costs based on good commercial quality materials.
6. Calculating the material cost of every ingredient.
7. Completing the Grand Total.
8. Estimating batch yield.
9. Suggesting an appropriate retail pack size.
10. Calculating the approximate material cost per retail pack.
11. Calculating the material cost per kilogram of finished product.
12. Complete the Assessment & Remarks column with practical observations on quality specifications, supplier considerations, seasonal variations, procurement risks and any other relevant comments.
Present the completed assessment in the same structure and format as the Hello Kisan framework preferably as TABLE 1.1
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PART 2 – Explain Your Work and Teach Me
Now explain everything you have done as if you are teaching a first-time entrepreneur. Please explain:
1. Why each ingredient has been selected. Is it industry practice.
2. Why the quantities have been assumed.
3. Why the ingredients have been arranged in that sequence.
4. How the percentages have been calculated.
5. How the Net Landing Costs have been estimated.
6. How the batch yield has been determined.
7. How the pack size has been selected.
8. How the material cost per pack and per kilogram has been calculated.
9. Which assumptions have the greatest influence on the final cost.
10. Which ingredients deserve the greatest attention during procurement.
11. Where cost savings may be possible without significantly compromising product quality.
12. Which assumptions should be replaced with actual factory data before finalising the costing.
Finally, explain the complete methodology in simple conversational English so that I understand not only this product but also learn how to prepare similar raw material cost assessments for other food products independently in the future.
