Should cost calculation

Description

The should cost calculation allows you to perform a detailed purchased part analysis, and establishes a safe negotiation basis with your suppliers. Moreover, FACTON content provides your purchasing department with integrated external Benchmark data.

With the help of a should cost calculation, you can summarize and calculate all cost information of a certain product, such as material costs, production costs or sales prices.

Examples

  • Purchased part price analysis
  • Target management
  • Location simulations
  • Investment analysis
  • Measure management

Insertion Positions

Should cost calculations can be used as price source for materials to display a supply chain. You can also use them as price source for assemblies and parts.

Materials:

Further Information > Multi-Level Supply Chain

Assemblies & Parts:

Further Information > Use a Calculation in a Calculation

Necessary location factors / general conditions

The following location-dependent master data - of the FACTON content or company's own - is used for the should cost calculation:

Location Factors Overhead Rates Wages
  • Imputed Interest Rate
  • Electricity Cost Rate
  • Floorspace Cost Rate
  • Material Overhead Rate
  • Manufacturing Overhead Rate
  • Administration overhead rate
  • Sales overhead rate
  • Development overhead rate
  • Logistics overhead rate
  • Basic Wage
  • Fringe Cost Rate
  • Premium Rate 1 Shift
  • Premium Rate 2 Shift
  • Premium Rate 3 Shift
  • Premium Rate Saturday
  • Premium Rate 1 Sunday
  • Non-Personnel Costs per Employee

Machine and material prices are also used.

Quantity Types

The should cost calculations have the unit "Piece".

Properties

The basic properties of the should cost calculation can be found in the Details view.

The following shows some properties available in the Details > General Properties view schema (combobox) at the should cost calculation.

Toggle View Schema

  1. Click in the view schema combobox to the top right of a view.
  2. All view schemes for the selected view are shown.

  3. Click on the desired view schema.
  4. This switches the view schema.

Note

The "Overview" view schema summarizes all available view schemes for the selected calculation or calculation element in groups. This schema is only available via the combobox.