Free tool · No sign-up · Augmino
Should-cost model tool for manufacturing
Augmino's free should-cost model tool for procurement and industrial sourcing. No registration or login. Build material, process, overhead and margin on your device, compare supplier quote gaps, and print a negotiation brief.
Workspace
Build your should-cost
No signup. Draft stays on this device. Print when the checklist is ready.
Sample data: load a finished should-cost analysis (with supplier quote gaps) for CNC, molding, or sheet metal.
Pick a category to load operations or leave blank and add your own. Press the selected category again to clear.
Precision manufacturing
Also common
Name the part and set the quantity you are costing.
Rate basis
Defaults to United States rate bands in USD. Switch region for India, EU/UK, or Southeast Asia, or edit any rate. Guidance is indicative for negotiation prep, not certified cost engineering.
Use input into the process, not only finished weight. Guidance fills an indicative rate you can change.
Indicative. Verify before use.
Optional credit for return scrap / turnings (0 = none). Typical steel turnings India ~20-40/kg.
Blank model. Add operations here or pick a process template above. Setup amortizes across quantity; cycle is per piece.
Start with your first operation. Add a blank row or pick a common step, then fill setup, cycle and rate.
Flat cost per part. Pick a finish to prefill, then edit the amount.
Pick shop and work type to fill indicative percentages, then change any value. United States overall bands: OH 25-50%, margin 8-18%.
Prefer shop process when machine-hour rates already include factory burden. Use all direct for a simpler all-in % on the stack.
Combined commercial mark-up after overhead (not % of selling price). ≈ 10.7% of sell price.
Procurement / handling on material (typical 2–5%).
On bought-in ops (plating, HT, coat) for freight, finance, inspect (typical 5–15%).
Quotes, notes & talking points
Paste unit prices as received. Gaps update against your model.
Optional before RFQ. Enter supplier unit prices when you have quotes to compare.
Notes for anyone reviewing this model later.
Starters from your model. Add bullets, bold or numbered lists; your text saves on this device.
Augmino · Should-cost brief
Untitled part
- RFQ / drawing
- Not set
- Quantity
- 0
- Process
- CNC / machining
- Region
- United States
- Currency
- USD
Internal negotiation prep. Not a supplier quotation.
Should-cost / unit
$0.00
Total at qty 0: $0.00
Cost build-up
| Material · 0% | $0.00 |
| Process (1 ops) · 0% | $0.00 |
| Overhead (35% on shop process) · 0% | $0.00 |
| SG&A + profit (12% on cost) · 0% | $0.00 |
| Should-cost / unit | $0.00 |
Assumptions
| Material | Grade not specified · $0.00/kg |
| Qty basis | Finished 0 kg · 20% of input weight as scrap (buy-to-fly —) · input ~0.000 kg |
| Commercial | Overhead 35% (shop process only) · SG&A + profit 12% on cost · United States rate guidance · mat handling 3% · outsourced mark-up 10% |
Process routing
| Operation | Setup | Cycle | Rate/hr | Cost/unit |
|---|---|---|---|---|
| - | 0 min | 0 min | $0.00 | $0.00 |
Volume scenarios
| Qty | Unit cost | Incl. tooling |
|---|---|---|
| 1 | $0.00 | $0.00 |
| 10 | $0.00 | $0.00 |
| 50 | $0.00 | $0.00 |
| 200 | $0.00 | $0.00 |
| 1000 | $0.00 | $0.00 |
| 5000 | $0.00 | $0.00 |
Internal use only · Do not forward to suppliers
Talking points
Starters from this model. Edit in the workspace to customize.
Our should-cost is about 0.00 USD/unit. Where does your quote differ?
We assumed ~35% overhead and ~12% margin. How do those compare to your cost structure?
Prepared with Augmino's free should-cost model tool for negotiation prep. Indicative only; not certified cost engineering. Verify material and machine rates before commercial decisions. Competitive quotes and talking points are for the buyer team; uncheck them in View before sharing a sanitized build-up externally.
How it works
How should-cost works
A should-cost model rebuilds piece price from the part itself: material, process time, overhead and margin. It replaces anchoring on last year's invoice or a flat percentage off. The number is a negotiation baseline, not a purchase order.
The formula we use
Unit should-cost = Material (+ handling %) + Process (setup share + cycle) + Outsourced (+ mark-up %) − Scrap credit + Overhead % + SG&A + profit mark-up % (+ tooling amortized over quantity when you enable it). By default, overhead applies to shop process only (value-add). SG&A + profit is a single mark-up on cost after overhead, not a % of selling price. Setup is spread across the batch; cycle is per piece.
What each layer means
| Layer | Meaning | In this tool |
|---|---|---|
| Material | Input weight × rate (or finished weight + % of input as scrap). Optional scrap recovery credit for turnings / nest scrap. | Material section |
| Setup | Changeover time amortized across quantity | Process rows · setup minutes |
| Cycle | Machine/labor time per piece × rate | Process rows · cycle minutes |
| Outsourced | Bought-in ops (e.g. heat treat) | Process · outsourced cost |
| Overhead / SG&A + profit | OH % on shop process (or all direct); then commercial mark-up on cost | Commercial |
| Tooling | NRE / dies / fixtures amortized over qty | Tooling card |
Should-cost vs will-cost
Should-cost is an efficient benchmark under the assumptions you enter. Will-cost is what you are likely to pay once real shops, capacity and commercial terms apply. Expect a gap. Paste supplier prices in the workspace to see unit and quantity gaps in the rail, View, and PDF.
When to use this tool
- Set a target before you send an RFQ
- Compare returned quotes and find where the gap sits
- Pressure-test a sole-source price with an independent build-up
- Check how unit cost moves with quantity / MOQ
Limits
Assumptions are yours and editable. This free tool is a simplified negotiation baseline, not CAD simulation, live rate libraries, or certified cost engineering. For the fuller method and Excel template, read the should-cost guide. When you want verified suppliers against the model, apply as a buyer.
Using the tool
How to use this bottom-up cost estimation software
The sections above are a full should-cost model tool: enter assumptions once, then revise rates and volumes as quotes come in. Use it as bottom-up cost estimation software to rebuild piece price from material, routing, overhead and margin rather than last year's invoice.
- Analyze manufacturing cost drivers. Input raw material weights and scrap percentages to calculate true material cost for CNC, molding, casting and related processes.
- Calculate process routing and cycle times. Add distinct operations for CNC machining, injection molding, sheet metal or casting, with setup and cycle minutes and machine-hour rates for your region.
- Run automated supplier quote gap analysis. Paste received unit prices to see percentage variances against your internal baseline and print a negotiation brief.
Worked example
Should-cost analysis example
Illustrative CNC should-cost for a precision shaft housing sourced in India (qty 250). Same numbers as in the workspace above. Supplier quotes below are fixed external facts — when the baseline improves, the gaps move. Simplified free baseline for negotiation prep, not certified cost engineering.
| Layer | Amount (INR) | Assumption |
|---|---|---|
| Material | ₹93.75 | 1.25 kg EN8 @ ₹75.00/kg (finished 0.85 kg; 32% of input as scrap; buy-to-fly 1.47) |
| Material handling | ₹2.81 | 3% procurement / handling on material |
| Process · Rough mill / turn | ₹109.07 | 8 min cycle @ ₹800.00/hr + 45 min setup / 250 pcs |
| Process · Finish | ₹121.60 | 6 min cycle @ ₹1,200.00/hr + 20 min setup / 250 pcs |
| Process · Deburr | ₹21.42 | 2 min cycle @ ₹630.00/hr + 10 min setup / 250 pcs |
| Process · Inspect | ₹27.68 | 3 min cycle @ ₹550.00/hr + 5 min setup / 250 pcs |
| Outsourced | ₹75.00 | Plating + heat treat / induction harden (bought-out) |
| Outsourced mark-up | ₹7.50 | 10% on bought-out (freight, finance, inspect) |
| Scrap credit | −₹12.00 | 0.40 kg turnings @ ₹30.00/kg |
| Overhead | ₹83.93 | 30% on shop process only (value-add) = ₹279.77 × 30% |
| SG&A + profit | ₹63.69 | 12% mark-up on cost after overhead (≈ 10.7% of sell price) |
| Should-cost / unit | ₹594.46 | Fixture NRE ₹15,000.00 not amortized into piece price. Packaging, freight and yield not modelled here. |
Quote gap vs this baseline
Same quotes as a looser all-direct baseline would have faced near ₹627/unit (A ₹741, B ₹640, C ₹577). Against this tighter model the gaps widen — that is the point of rebuilding the stack.
| Supplier | Quote (INR) | Gap | Flag |
|---|---|---|---|
| Supplier A | ₹741.00 | +24.7% | Above |
| Supplier B | ₹640.00 | +7.7% | Above |
| Supplier C | ₹577.00 | -2.9% | Near |
Quotes under the model are flagged Investigate. Load , , or from Try sample for other process families.
Should-cost model tool FAQ
Tool usage answers. Method is above. Should-cost guide.
- Is there a free should-cost tool without login?
- Yes. Zero registration or sign-up. Build the model, compare quotes, and print a brief on your device. Assumptions stay editable. It is negotiation prep, not enterprise CAD simulation software.
- Is this bottom-up cost estimation software?
- Yes. It rebuilds unit price from material, process routing, overhead and margin (classic bottom-up should-cost), then optionally compares supplier quotes. It is not top-down target pricing or full TCO software.
- How do I calculate should-cost for CNC parts?
- Select CNC / machining under process templates to load standard cycle times and rates for the region you choose. Edit every assumption, then add material weight, overhead and margin to finish the build-up.
- How do I compare a supplier quote against should-cost?
- Open Compare supplier quotes (Section 06), paste unit prices. The right-hand rail shows % gaps and identified opportunity (gap × quantity). View / Print PDF includes the same when you keep quotes checked.
- How is should-cost different from total cost of ownership (TCO)?
- Should-cost is the piece-price build-up. TCO adds landed cost, quality risk, inventory and switching cost. Use this tool for the should-cost layer; keep TCO as a separate decision frame.
- Do I need an Excel should-cost template?
- No. This tool covers the same structure as a should-cost model template: material, routing, overhead, margin, volumes and quote gaps. You can still export a PDF brief for internal review.
- Can buyers use this before RFQ?
- Yes. Many teams build a should-cost before sending RFQs to set a target. Add supplier quotes later when you want gap % and negotiation talking points.
- Do I have to pick CNC, molding or another process?
- No. Start blank if you want. Optional process templates and situation guidance fill indicative values you can edit or clear.
- Where is my data stored?
- On your device only. Nothing is uploaded to Augmino when you use this free tool.
- How does this relate to Augmino?
- Augmino connects buyers with verified manufacturers. Use this model tool when you negotiate. Apply as a buyer when you want supplier introductions for parts you source.
- Quick steps
- 1. Choose a process (optional). Select CNC / machining, injection molding, sheet metal or another template to load suggested operations and rates, or skip and build from blank.
- 2. Set part and rate basis. Add part name and quantity, then choose region rate guidance and currency.
- 3. Enter material and process routing. Set input or finished weight with scrap, then setup and cycle times with rates for each operation. Add tooling/NRE if needed.
- 4. Apply overhead and margin. Use the guided ranges for the region or enter your own percentages.
- 5. Compare quotes (optional), notes and talking points. Under Compare supplier quotes, paste supplier unit prices to generate quote gap analysis, add assumption notes, edit talking points, then print or save as PDF.