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Should Costing - Why and How to Perform

Should Costing - Why and How to Perform banner
Self-paced Beginner

Should Costing - Why and How to Perform

4(17)
9 enrolled
4437 views
$ 40
102 min
Anytime
English
4437 views
Sarjerao Pingale
Sarjerao PingaleHead of Cost Engineering-India Region
  • 7-day money-back guarantee
  • Lifetime access
  • Certificate of completion

Why enroll

Mastering "Should Costing - Why and How to Perform" propels career growth for cost engineers, procurement professionals, and supply chain managers. Professionals can transition into senior roles like Cost Engineering Manager, Procurement Director, or Supply Chain Optimization Specialist, or specialize in cost analysis, should costing, and strategic sourcing. Expertise in should costing enhances job prospects, earning potential, and leadership opportunities, ensuring data-driven decision-making, cost savings, and competitive advantage in industries like manufacturing, aerospace, and automotive. By learning why and how to perform should costing, professionals can drive business growth and innovation.

What enrolled engineers say

6 verified reviews
  • May 3, 2026

    Doesn't sugarcoat the shortcut mindset; it frames should costing as work you choose because the math matters, not because it's comfy. From a TeamLead lens, the value was aligning PMs and engs around cost drivers so PR debates don't drift, and keeping infra choices honest before they hit prod or k8s scale. The BOM sanity check in Section 2.4, where he walks a fastener cost up from raw material to margin, stuck with me; we used a similar table in automotive sourcing, and the spreadsheet layout was immediately reusable. I wasn't sold on the early history tangent, and I wished there was more on tying should-cost models into CI gates without overfitting RPS assumptions. Applied it the next week to a vendor quote review, and the team caught two padding items without torching the relationship. The win wasn't new facts so much as reconciling what I knew with what I assumed, which changed how we ask for numbers.

    Ramu P. Verified
  • May 3, 2026

    The course starts grounded in real constraints, not academic math, and ties should costing to decisions engineers actually make under budget and schedule pressure. The teardown/BOM walkthrough in Chapter 3, especially the labor rate sensitivity table around 18:30, stuck because it showed how a 5% assumption swing ripples through unit cost. I wasn't sold on the early definitions—they lingered—but the parametric model section clicked, and I've since used that framing to simplify a gnarly pricing path in prod and a PR touching our arch.

    Babasaheb S. Verified
  • May 3, 2026

    The angle on testability went further than expected, especially how cost assumptions get treated like code paths you can actually exercise. The clean-sheet BOM walk-through in the “Material Drivers vs Process Drivers” section stuck with me; mapping cycle time to cost felt like reviewing a PR where the arch finally lines up with infra reality. Coming from legacy spreadsheets and tribal knowledge, the way it framed sensitivity checks as CI gates made sense, even if the beginner pacing lingered a bit on definitions. It's mostly practical, though I wasn't sold on the quick detour into vendor quotes without more on variance handling. Between meetings, I kept thinking how this would’ve helped earlier automotive programs where prod RPS targets were set before obs existed. I've been bridging old cost models to modern workflows for a while, and this gives a shared reference—one I’ve been missing the last couple years.

    Meghana S. Verified

Is this course for you?

You should take this if

  • You work in Aerospace or Automotive
  • You're a Mechanical Engineering professional
  • You prefer self-paced learning you can revisit

You should skip if

  • You need a different specialisation outside Mechanical Engineering
  • You need live interaction with an instructor

Course details

Understanding the drivers of raw materials and manufacturing costs is imperative to unlocking cost savings opportunities. Limited visibility into these cost drivers — and the overall production process — often results in incorrect component pricing, weakening your bargaining position with suppliers and making it all the more difficult to find avenues to cut costs.

Should-cost analysis is a powerful cost estimation tool that equips and empowers your procurement team to furnish viable evidence to suppliers as part of negotiation efforts, helping you achieve a final cost estimate that is closer to your target price. New product development is the key driver of business sustenance. Once a product is launched in to the market, it has its own rivals to kill it. However, it will only sustain based on the cost and technological impact that differentiates itself from the rest. In order to establish a targeted cost for the product, cost management is quite essential and has to be initiated from the design stage in the product life cycle to achieve the target cost. Cost management denotes actions driven by the top management to satisfy (meet) customer’s requirements on reducing and controlling cost in the early stages of design. Hence Should-Cost analysis is essential for profitable new product development.

Course suitable for

Key topics covered

  • Should Cost Definition

  • Applications of costing

  • Objectives and Advantages of Should costing

  • Should costing for New Product Development process

  • Inference of Should costing vs purchase/manufacturing cost

  • Typical Should Cost Parameters

  • Hourly Machine rate

  • Tool amortization cost

  • Plant overheads

Course content

The course is readily available, allowing learners to start and complete it at their own pace.

7 lectures1 hr 42 min
  1. Introduction
    22 min
  2. Costing Elements and Parameters
    13 min
  3. Tool atomization cost & Break even analysis
    13 min
  4. What do we learn from should costing
    4 min
  5. Application and Objective of Should Costing
    12 min
  6. Process of Costing and Calculations
    22 min
  7. Sheet metal example
    16 min

Opportunities that await you!

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Industry-aligned courses, expert training, hands-on learning, recognized certifications, and job opportunities-all in a flexible and supportive environment.

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Questions and Answers

A: A: Red flag. Piece cost alone never captures field exposure, and the failure shows up exactly where warranty labor dominates. B: Steel index drift hits day one, not a mileage-triggered spike. C: Conservative DFMEA raises cost, it doesn't hide it. D: Learning curves skew unit cost, not mileage-linked warranty spend.

A: A: Teardown without an as-built BOM is fantasy; rev drift kills accuracy. B: Quotes embed supplier margin and risk, not physics. C: $/kg hides process and tolerance drivers. D: That's target costing, not should costing.

A: A: 18 min is 0.3 hr → $25.5 base, then divide by 0.88 yield and add 8% overhead. B: Drops scrap entirely. C: Order matters; overhead applies to effective cost, not raw time. D: Yield loss is real cash, not accounting noise.

A: A: Safety planning, FMEDA, and validation rigs burn real hours and fixtures. B: ISO doesn't regulate margin. C: Durability still runs in parallel. D: SIL influences architecture, not raw material pricing.