Cost Analysis and Should-Cost Modeling

When a supplier says “that is our best price”, a cost model is your best answer. This course teaches you to break down costs, build should-cost models and use them to drive fact-based negotiations.

What you will learn

• Cost breakdown structures: material, labour, overhead and margin
• Building a should-cost model in Excel step by step
• Open-book costing: when and how to ask for it
• Indexing prices to raw materials and energy
• Presenting cost analysis to suppliers without breaking the relationship

Who this course is for: buyers and cost engineers who negotiate manufactured parts or services.