Abstract Research advances in digital factory design has led to a number of simulation techniques and tools which have the capability to represent aspects of the lifecycle of manufacturing systems. Although this is the case, analysis of key performance indicators (such as cost) are not very advanced when compared with other digital manufacturing simulation applications. To address this gap, this paper proposes a dynamic cost modelling (Product, Process, Resource, Cost-PPRC) methodology which is based on an initial digital modelling of the (perceived or real) production system and then associating product features with the capabilities of the production system. The paper reports a case application of the PPRC methodology for remote laser welding (RLW) of a car door. The methodology provides a basis for economic justification of product, process and resource related changes