A Guide to Should Cost Analysis to Build Better Products
The ability to consistently get accurate cost estimates for new products and parts is elusive. Cost estimates are inherently imprecise, and the underlying drivers can change daily based on the price of a single material, a new union contract, or a supply-chain disruption. It’s a critical challenge for manufacturers working in tighter product development windows and with increasing pressure on profit margins.
Companies can overcome some of the uncertainty they face in product cost estimation with a practice called “should cost” — and deliver smarter design, strategic sourcing and faster time to market.