Should-Cost: Build the Price Up from Material, Conversion, Overhead and Margin
This lesson is part of the course
In this lesson
You build a should-cost price for a machined part from material, machine and labour time, overhead and margin, and measure how far the supplier's quote sits above it.
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Lessons in this course
- Savings Maths: Cost Reduction vs Cost Avoidance, Volume-Weighted and In-Year Locked
- Should-Cost: Build the Price Up from Material, Conversion, Overhead and Margin Locked
- Total Cost of Ownership: Price, Freight, Duty, Carrying Cost and Quality Cost per Unit Locked
- Comparing Quotes: Early-Payment Discounts as an Annual Rate and the Normalised Unit Cost Locked
- Price Indexation: Base vs Current Index, a Weighted Formula, the Cap and the Allowed Change Locked
- Supplier Risk: Share of Spend, Single-Source Flags and a Weighted Risk Score Locked
- Negotiation Prep: Walk-Away, Target and Opening Price from Cost Data, and a Concession Plan Locked
- Timed Case Exhibit: Price-Increase Questions on One Category and a Score Sheet Locked