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Explainability Framework

The biggest difference with CostEngine (MfgIQ) isn't just that it calculates a price—it's that it proves it. We make sure every cost is clear, honest, and easy to defend when a customer asks questions.

Why we built this

"In manufacturing, a quote is a negotiation. If you can't explain every rupee, you risk losing the deal or your margin. We don't just give you a price; we give you the backup you need to win."

Three Pillars of Explainability

1. Where did the data come from?

Every number has a trail: - From your Excel: "This weight came directly from cell B14 of your upload." - From the Master Data: "This material rate was pulled from your central list on 2026-01-24." - From a Human Nudge: "Estimator Rahul changed this cycle time manually."

2. How was it calculated?

No "black box" math. Everything is human-readable: - Instead of just showing ₹529, we show: (Material ₹264) + (Operations ₹238) + (Overheads ₹27). - You can click on any number to see the exact formula we used.

3. Why did the price change?

We make it easy to see the difference between version 1.0 and 1.1: - Did the steel price go up? Or did we add a new operation like heat treating? - Our version comparison tool highlights these shifts instantly.

Explainability UI Patterns

A. The "Explain This" Modal

Available on any cost line item. It displays: 1. The inputs: What raw numbers were used. 2. The math: The actual formula we applied. 3. The assumptions: Things like efficiency or scrap rates. 4. The "Key Field" notes: Any required explanations for why a number was nudged.

B. Inline Source Tags

Subtle badges next to data fields: - [EXCEL] Blue: From the uploaded file. - [MASTER] Green: From central database. - [CALC] Purple: Result of a formula. - [EDITED] Amber: Manually changed.

Hierarchy of Explainability

CostEngine breaks down explainability into levels:

Level Audience Goal
Executive Management High-level margin check and risk assessment.
Estimator Costing Team Detailed validation of every operation and weight.
Customer Procurement Professional breakdown to justify the price.

Technical Implementation (Metadata)

The system stores an explainability_blob for every quote version.

{
  "metric": "raw_material_cost",
  "value": 263.95,
  "logic_path": "MaterialSheet -> FormulaV1 -> Result",
  "data_points": {
    "gross_weight": {"value": 2.304, "source": "excel://Sheet1!D13"},
    "rm_rate": {"value": 99.5, "source": "db://rm_master/SAE4140"}
  },
  "formula_string": "(gross_weight * rm_rate) / yield"
}

Best Practices for Estimators

  1. Add Comments on Overrides: Always explain why you changed a machine time. "Machine #4 is running slower this week" is a defensible reason.
  2. Update RM Rates Weekly: Explainability depends on current market data.
  3. Verify Yield Labels: Ensure your "Net" and "Gross" markers in Excel align with the system's mapping.