Should Cost ®

“Should-Cost ®” Tool – Methodology and Purpose

The “Should Cost ®” tool relies on :

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    Technical Data Bases
    Raw Material costs, machine use costs, …
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    Economical Data Bases
    Labor Costs, energy cost, overheads,… by country and technology
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    Calculation Models of in/direct costs
    Material, labor, amortization, structure, margin…
Should Cost® Operation - Principe de fonctionnement - IMPROVALUE

“Should Cost” helps realize sensitivity studies :

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    Product
    Design alternatives …
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    Location
    Theoretical gap between manufacturing countries
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    Volume
    Impact on costs of a 20 % rise of the volume (ex: standardization volume effect)

Should Cost ® an ImproValue trademark

Should Cost® - Sensitivity Studies - Études de sensibilité - IMPROVALUE

Virtual workshop

How to assess the production cost?

Virtual workshop consists of modeling :

  • Start with machine (investment, capacity, cycle time…)
  • Introduce the machine in a workshop
  • Localize the workshop in a plant
  • Integrate the plant into a company structure

Push Pull® approach

What to expect from your supplier ?

Proclaimed Objectives to Supplier :

  • Better Mutual Understanding of Cost Drivers
  • Better Mutual Understanding of Cost Optimization Levers (for example : impact of specification on the costs)
  • Identification of Respective Concerns in order to Propose Optimizations Axis (for example: Impact on Design Changes, …)
  • Development of Transparency to Improve Confidence

Unproclaimed Objectives to Supplier :

  • Identify Fact-Based Negotiation Levers
  • Change the Relationship (“Now you know I know”)
boomerang