Should Costing


Should cost analysis is carried out to know the supplier’s expenses involved in delivering a product or service. Merritt uses Should cost analysis in new product design for cost as a guideline for negotiating or comparing with the supplier’s proposal and suggest globally suitable low cost geography for manufacturing of the product. Merritt support its customer with Should cost analysis at different stages of the product design and development.

Concept should costing : Helps to understand what the concept could cost when realized.

Development should costing : Helps with cost out opportunities during the development stage

Target Should costing : Helps with sourcing and continuous cost reduction initiative

    Merritt should cost helps its customers by suggesting without changing the design intents :
  • • Alternate materials
  • • Alternate manufacturing and finishing processes
  • • Suggestions on part and tool simplifications
  • • Major cost drivers for review from design

Benefits to customer

Merritt Should costing solutions deliver value to customer across the lifecycle. Our teams have helped customer in realizing benefits in bettering target costs, reduce manufacturing and supply-chain costs and avoid costs during design and manufacturing phase

  • • In a complete machinery development involving 600 designed parts - a saving of USD 15,000 was achieved.
  • • Gear box design was achieved with 22% lower costs compared to competing product
  • • Provides cost benchmark for design, manufacturing and procurement
  • • Deciding the low cost country for manufacturing location
  • • Real time cost information at every stage of the product
  • • Identify and eliminate inefficiencies in manufacturing processes
  • • Make or Buy decision support
  • • Decision support for Global sourcing strategy
  • • Detailed analysis and reports for benchmarking.
  • • Should cost information for different design iterations (design to cost)
  • • Survey of alternate methods of manufacture using should cost-data
  • • Cost optimizations based on should cost models