In a volatile global economy, cost engineers cannot rely on guesswork. From shifting material prices to regional wage fluctuations, every data point feeds into a company’s ability to stay competitive. Reliable master data is the foundation of trustworthy calculations.
This article outlines how Tset and Kerkhoff Software provide manufacturers with high-quality global master data and apply it directly in the software to achieve accurate and scalable costing. This content is also available as a webinar recording, which you can watch here.
Reference Master Data Available in Tset Software
Every Tset software license comes with a library of reference master data. Unlike spreadsheets or static tables, this master data is structured, continuously updated, and designed to scale across industries.
Included in the reference master data package are:
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Material prices: More than 1,100 ferrous and non-ferrous alloys, plastics, and polymers, with technical properties such as density and melting points, combined with regional prices.
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Material CO₂e: Data on primary vs. recycled materials, covering ferrous and non-ferrous alloys, plastics, and polymers. Not all listed data are included in the out-of-the-box software, but available on demand.
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Location factors: Regional data across 52 countries and 578 subregions, including electricity and gas prices, floor space costs, interest rates, and CO₂ equivalents.
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Labor wages: Five skill levels across 11 industries, with both minimum and average wages.
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Overhead rates: Benchmarks for automotive and non-automotive industries, innovation grades, and yearly production volumes.
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Machines: Reference data for 3,000 machines, including investment, energy demand, depreciation, maintenance, and consumables.
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Manufacturing process templates: More than 220 pre-configured templates across 35+ manufacturing technologies.
A large part of it is provided through Tset’s partnership with Kerkhoff Software, which supplies validated global data on material prices, location factors, and labor wages.
Tset also ensures that every calculation includes both cost and CO₂ impact by default, giving companies a holistic view of profitability and sustainability.
Politics, Inflation, and the Fight for Data Accuracy
Behind every clean number in Tset’s product costing software lies a complex story. Much of the wage and location data comes from Kerkhoff Software, a company that researches and validates information across more than 700 geographies worldwide. As Godo Lange-Hilmers, Managing Director at Kerkhoff Software, explained in the following section, this work is anything but straightforward.
Navigating Wage Data Across Continents
Wage costs vary not only between countries but also within them. China alone is split into more than 20 subregions, while India is divided into dozens of states. Shanghai’s values differ significantly from those of inland provinces. To make such data usable, Kerkhoff Software reduces it to “base values.” Extras such as overtime or social costs, which are inconsistently included, are removed. This standardization allows wages to be compared across geographies.
When Inflation and Politics Interfere
In volatile markets such as Turkey or Argentina, single annual updates are not sufficient. Inflation can erase accuracy within weeks. Kerkhoff Software therefore updates wage data several times per year and accounts for exchange-rate shifts.
Political conditions also influence the data landscape. Some governments delay reports or change definitions to obscure economic downturns. Kerkhoff Software addresses this by cross-checking official figures with independent sources to maintain reliability.
Minimum Wages and Future Predictions
Even the concept of minimum wage differs globally. In India, definitions vary across states and sectors. Kerkhoff Software harmonizes these variations into a consistent dataset that can be applied in Tset.
Wage data also allows for reliable forecasting. Historic growth curves often show steady trends, which provide a baseline for future assumptions. Tset does not provide forecasts directly. Instead, companies can apply their own inflation factors to Kerkhoff Software data, thereby creating realistic cost projections for projects scheduled years ahead.
Turning Master Data into Actionable Decisions
High-quality master data is only valuable when it drives outcomes. Tset’s software brings it to life by allowing users to simulate scenarios, compare locations, and build negotiation strategies in real time.
Exploring Regional Wage Differences
Let us consider Morocco as an example. Users can access wage data not just for the country but also for subregions such as Marrakech-Safi. Historical values show how wages have developed over time. Occasional decreases highlight the importance of interpreting corrections in the source data. This level of detail supports precise sourcing decisions.
Material Pricing and Scrap Calculations
Material data carries both technical and economic depth. Chromium steel bars, for instance, include attributes such as density and melting points alongside regional prices. In Asia, the cost is significantly lower than in Europe or North America.
In practice, these reference prices flow directly into part-level calculations. Tset software automatically factors in scrap rates from six-metre bars, segment lengths, and scrap refunds. Kerkhoff Software prices provide the base, while Tset’s calculation logic ensures accuracy in application.
Full Assembly Simulation and Regional Comparison
Complex assemblies demonstrate the power of data integration most clearly. In one example, a printed circuit board was automatically broken into dozens of manufacturing steps, each tied to master data inputs such as machine rates, interest rates, labour categories, and scrap assumptions.
The same assembly can also be simulated across different regions. By relocating production from Hessen to Hamburg, the entire cost model updated instantly. We also demonstrated how users can override supplier assumptions. For example, by entering €40 per hour for unskilled labour, the software recalculated the entire assembly within seconds.
Conclusion
Accurate master data is the foundation of reliable cost engineering. Through its partnership with Kerkhoff Software, Tset ensures that every calculation, whether for sourcing, design evaluation or carbon optimization, is based on validated and globally comparable data.