Cost Estimates and Should Costing
With 80% of costs locked in during design, should cost analysis gives you the ability to analyze the true costs of a new product long before it is ever produced. Custom, engineer-to-order, and contract manufacturers use should costing programs to align product development, engineering, manufacturing, and sourcing groups to determine expected component and product costs before engaging any vendors in an RFQ process.
ImpactECS combines cost data including raw material costs, labor rates, overhead costs, and profit margin requirements to model product costs and identify cost drivers in a meaningful way. You can improve vendor negotiations, identify cost reduction opportunities, drive pricing decisions, and evaluate profits by unique product. ImpactECS provides the platform to perform fact-based cost comparisons to find the right materials, processes, and strategic partners.
- Determine target costs for new products: Calculate detailed material, labor, conversion, and overhead costs to determine baseline cost answers that drive material, component, production, and supplier decisions
- Identify cost reduction priorities: Evaluate existing product should costs to identify outliers and uncover potential cost saving opportunities across materials, components, or suppliers
- Improve supplier negotiations: Offer transparent cost details to improve your procurement team’s bargaining position with suppliers
- Simulate cost performance: Adjust volumes, product mix, resource availability, capacities, utilizations, or other inputs to see the impact on both production and procurement costs to overall product profitability
Cost-Based Quoting and Analytics Overview
Want to know the true profits for every new order or customer? To effectively quote products with complex based on the customers specific requirements need robust cost details to improve pricing decisions.
For custom, engineer-to-order, and other environments where customer requirements dictate production – the “product” exists only when an order is placed. To get the detailed and vital cost information needed to set prices and protect margins while covering costs, companies use ImpactECS to establish a robust costing estimating process.
Resources
Creating a Cost-Focused Culture
Watch the Discussion >Get Quick Insights and Best Practices
Visit the Video Library >Using Product Costing to Guide Key Business Decisions
Watch the Discussion >Is Your Product Costing Process Healthy?
Get your Score >Cost Allocations: Gaining Actionable Insights
Read the Article >Ready to see ImpactECS in action?
Get a glimpse of how we help companiesunderstand their costs and profits