THE SHOULD-COST ENGINE

How LevelPlane calculates a should cost.

Read the requirements. Establish a feasible route. Build the cost from operations. Carry the accepted basis into the next decision.

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AN EXPLAINED COMPARISON

Compare the same part in two factories.

The updated whitepaper’s ADC12 gearbox housing: 2.8 kg finished, 60,000 parts per year, machined and leak tested. Illustrative US dollars per part.

This is the 2.8 kg housing from the updated visual whitepaper. Figures illustrate the method and include commercial assumptions.

MAKE THE CORRECTION USEFUL

Review a cycle time. Retain the approved correction.

A confirmed 48-second cycle should not need to be explained again on the next matching part.

Change the cycle time below to see the arithmetic. In the engine, the approved change also needs evidence, an owner, a scope and a version.

CORRECTION REUSEIllustrative

Finish-bore operation · illustrative correction

Operation time only · US$90/hour · one unit/cycle

30 sec60 sec90 sec
$1.50operation cost / part
Same basis: cycle seconds × $90 ÷ 3,600.

The finish-bore correction from the whitepaper, shown at an illustrative US$90/hour. Other cost lines stay outside this calculation. The slider changes this example only.

THE INPUTS MATTER

Check the source behind each rate.

Match each rate to the material, grade, form, region, unit and date.

FIRST

Your approved agreement.

Use the relevant negotiated rate with its terms and effective period.

THEN

An applicable reference.

Use a connected database record or maintained manufacturing reference where an agreed value is unavailable.

ALWAYS

A visible evidence gap.

Keep estimates and agent-researched assumptions identifiable until reviewed.

MEASURE THE WHOLE JOB

Measure accuracy and review effort.

Check the manufacturing route as well as the total, and measure the time your team spends reviewing the result.

Compare the same part revision, volume, plant, rates and cost inclusions. Review the operations as well as the total. Count setup, correction, review and reruns—not only model response time.

Drawing-extraction benchmarking and cost validation answer different questions. The published drawing study evaluates extraction; should-cost is checked against matched customer references and the complete manufacturing route.

Read the technical white paper

START WITH A REAL PART

Discuss a part or workflow.

Tell us about the part, quotation or workflow you want to improve. We’ll agree what to evaluate and which inputs are needed.

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