Should Cost/Cost Break Down method Template

Description
This is an automated calculated template, where you will fill your material details and automatically you will get the exact cost related to Raw Materials, Labors, Overhead cost, preproduction cost, Tooling/Machining details etc.

This tool will help an user to calculate automatically on Material Utilization, Total Material Cost, Total Labor Burden cost, Labor Cost, Burden cost per Hour, Total Annual cost, Total Variable cost, Fixed overhead cost, Final Selling price, Tracking Production Tooling detailed information, Total Tool cost, Total Lead time, Prototype costing and Piece price per Unit.

Should-Cost modeling is the process of determining, what a product must cost based upon the drivers like component’s raw material costs, manufacturing costs, process overheads, and an added rational profit percentage. Many a times, the engineering teams do not evaluate the cost of the product themselves and instead, rely on the sourcing for the cost information. The sourcing team negotiates with their suppliers with limited information provided by the designers and without the should-cost models. If the cost model is in place, it would be helpful for the engineering team to evaluate the various design concepts focusing on the target cost during the development phase and also accomplish effective sourcing. Integration of strategic sourcing along with engineering team in making the cost model will result in an effective should-cost model, which enables the sourcing team to have a better leverage while negotiating with their suppliers.