Should-Cost Analysis & Modeling Software for Engineered Parts and Assemblies
Emithran builds bottom-up should-cost models for parts and multi-level BOMs, so cost engineers and sourcing teams can check supplier quotes against an independent estimate, compare materials, processes and locations, and negotiate from evidence.
Built for cost engineers, sourcing and procurement teams, and design leads at manufacturers in defence, aerospace, space and automotive programmes.
What is should-cost analysis software?
An independent, bottom-up estimate of what a part should cost
Should-cost analysis, also called clean-sheet or zero-based costing, estimates what a part or assembly should cost to make, built up from its inputs rather than taken from a supplier's quote. Should-cost modeling softwaremakes that estimate repeatable, documented and comparable across suppliers, materials and locations. Emithran works as costing software for the buyer's side of the table: it builds a part's cost up from material, process, labour and overhead so teams can check supplier quotes.
Each element of an Emithran model is tied to an explicit assumption, so a supplier's quote can be compared with the model element by element, not just in total.
What goes into a model
Each element carries an assumption that can be reviewed.
- Raw material — Material weight and price
- Process cost — Cycle time × machine-hour rate, plus labour
- Tooling — Amortised over production volume
- Rejection allowance — A percentage for scrap and rejects
- Overheads — Machine and labour overheads
- SG&A and profit — Applied as stated percentages
- Delivered cost — Packing, freight, duty and delivery, when you need landed cost
See these elements applied to real parts in the worked examples.
Who it is for
Who uses should-cost software, and the problems it solves
Cost engineers
Build documented, repeatable cost models from drawings or CAD, instead of maintaining a separate spreadsheet for every commodity and every author.
Procurement and sourcing teams
Check quotes against an independent estimate, set a target price before the RFQ closes, and negotiate from a cost breakdown the supplier can respond to.
Design and NPD teams
See which materials, features and processes drive cost while the design can still change, and carry the findings into VAVE work.
VAVE software →Programme and supply-chain leads
Compare manufacturing locations on landed cost and make make-vs-buy decisions with logistics, duty and tooling included.
Typical problems it addresses
- Supplier quotes you cannot verify line by line
- No agreed target price before the RFQ goes out
- Location and material decisions made on ex-works price alone
- Cost knowledge locked in individual spreadsheets
The same workflow supports programmes in defence manufacturing and aerospace cost engineering, where supplier qualification and documented cost evidence matter, as well as automotive and precision-engineering supply chains.
How It Works
How should-cost modeling works in Emithran
01
Define the part and the basis
Start from a drawing, CAD file, BOM line or part description. Set the basis for the model: annual volume, batch size, shifts and manufacturing location.
02
Lay out the process route
The model breaks the part into the operations it needs, for example cutting, forming, welding, machining, coating and inspection, each with a cycle time and a machine-hour rate.
03
Cost every element
Every element is costed per part, rolled up through the BOM and ranked by share of total cost. The assumptions and rates behind each result are shown, so they can be reviewed and challenged.
04
Compare and negotiate
Set the should-cost against the supplier quote, or run alternatives such as another material, process or location, including landed cost. Generate a negotiation brief with the gap and a suggested target price.
Prefer to have engineers build the first models? Emithran's Expert Engineering Support team covers product cost estimation, teardown and benchmarking, and sourcing support.
Worked examples
Should-cost models applied to real programmes
Three decisions where a bottom-up cost model gave the team something concrete to compare. Figures are taken from the linked case studies.
Location decision
HGV chassis rails: India delivered vs Belgium ex-works
Hydrogen HGV ladder frame, 74 BOM line items, 1,312 units a year. The case study sets an ex-works rail cost in Belgium against an India roll-formed rail delivered duty-paid (DDP) to Scotland.
€872 vs €538
per rail: Belgium ex-works vs India delivered (DDP), 38% lower
Not a like-for-like comparison: the Belgian figure is ex-works and excludes freight and duty.
Read the case study →Material decision
Exhaust assembly: titanium vs stainless steel
The exhaust assembly was costed from first principles in titanium and in stainless steel, for UK manufacture at 300 units a year, with cost drivers and a supplier target cost for each component.
Cost-driver analysis
LCV rear axle: where the cost sits
51.2 kg axle assembly at 40,000 units a year, manufactured in India and costed through a four-sub-assembly BOM, down to casting, forging and machining operations.
$244 per axle
the drive head / carrier assembly is the largest cost driver, at 46% of the total
Read the case study →Platform Capabilities
What the should-cost engine covers
Process-Level Costing
Costs are shown per operation rather than as one lump sum, so you can see which processes and which parts drive the price.
BOM Roll-Up and Cost Drivers
Costs roll up through multi-level BOMs so you can see which components and sub-assemblies carry the most cost, and focus negotiation effort there.
BOM management software →Multi-Geography and Landed Cost
Compare India, Germany, the UK, the USA, China, Mexico and Turkey. See delivered cost including packing, freight, duty and delivery, not just ex-works price.
Drawing, CAD and BOM Input
Cost a single part from a drawing, CAD file or part description, or a whole assembly from its BOM.
Negotiation Briefs
Should-cost against the supplier quote, the gap by cost element, and a suggested target price, in a form you can share with the supplier.
Scenarios and VAVE
Compare materials, processes and sourcing options, such as titanium vs stainless steel or make vs buy, and link the findings to value analysis and value engineering.
VAVE software →Should-cost is one module of the Emithran platform. It works alongside BOM management and supplier intelligence, so the cost model, the BOM and the supplier shortlist share the same data.
How We Compare
Emithran vs spreadsheets vs enterprise costing tools
Each approach suits a different team. Where an enterprise tool has broader process coverage than Emithran, that is a real advantage, so the fairest test is to cost the same parts in each.
Swipe sideways to compare all three.
| Criterion | Emithran | Spreadsheets | Enterprise CAD-based tools |
|---|---|---|---|
| Best suited to | Teams that want should-cost, BOM and supplier data in one place, with India-native cost data | A small number of parts, or one-off checks | Large programmes that need very broad, highly automated geometry-based costing |
| Cost data | Labour rates, material prices and supplier base built in for India, plus multi-region comparison | You research and maintain every rate yourself | Typically broad global cost libraries; confirm coverage for your regions |
| Process coverage | CNC machining, stamping, casting, injection moulding, sheet metal, roll forming, welded assemblies, PCB assembly — expanding | Whatever formulas you build | Often broader process libraries than Emithran today |
| Consistency and audit | Common model structure; assumptions and rates shown with each result | Varies by author; versions circulate by email | Standardised model libraries |
| Connected to BOM and suppliers | Yes: BOM management and supplier intelligence on the same platform | Manual copy and paste | Varies by product |
| Getting started | Pilot on your own parts; scope and timeline agreed with the team | Immediate, but every model is built by hand | Scope and timeline vary; ask each vendor |
| Pricing model | Outcome-based packages, no per-seat fees | No licence fee; costs internal time | Typically a licence or enterprise contract |
Evaluating options? Our should-cost software buyer's comparison covers what to look for. Pricing is outcome-based; see the pricing page for packages.
FAQ
Common questions about should-cost software
What is should-cost analysis software?
Should-cost analysis software builds a bottom-up estimate of what a part or assembly should cost to manufacture, from explicit cost assumptions rather than a supplier's quoted price, so you can compare the two. Emithran does this for individual parts and multi-level BOMs, with BOM management and supplier data on the same platform.
What is costing software, and where does Emithran fit?
Costing software is a broad term. It covers tools that estimate what a part will cost to make, tools that allocate overheads through activity-based costing, and tools that track project or job costs. Emithran is manufacturing costing software for part and BOM costing: it builds a bottom-up should-cost from material, process, labour and overhead, rolls it up through a multi-level BOM, and lets you compare the result with a supplier quote and across manufacturing locations.
What do I need to build a should-cost model?
A drawing, CAD file or detailed part description; the material and annual volume; and the manufacturing location you want to assume. A supplier quote is optional, but it lets the model show the gap between quote and should-cost. The more complete the drawing or CAD file, the more precise the estimate.
How accurate is a should-cost model?
Accuracy depends on how complete the inputs are (drawing, material, volume, location), how current the rates are, and how closely the assumed process route matches what the supplier actually runs. Treat a should-cost as an independent reference point, not a guaranteed price, and validate a pilot against quotes or actuals you already trust before relying on it in a negotiation.
Which manufacturing processes are supported?
Emithran currently supports CNC machining, stamping, casting (sand, die and investment), injection moulding, sheet metal fabrication, roll forming, welded assemblies and PCB assembly. Forging, extrusion and additive manufacturing are being added. If your parts depend on a process that is not listed, ask about it in the demo.
Can I compare manufacturing locations and landed cost?
Yes. You can run a multi-geography comparison across India, Germany, the UK, the USA, China, Mexico and Turkey in one report. The output includes delivered (DDP) cost with logistics and duty factored in, not just the ex-works price. Our chassis-rail case study, for example, sets a Belgian ex-works rail cost against an Indian roll-formed rail delivered to Scotland.
How do I use should-cost in a supplier negotiation?
Emithran generates a negotiation brief that shows your should-cost estimate beside the supplier's quote, the gap by cost element, and a suggested target price. Should-cost is an independent estimate, not a guaranteed price, so use the gap to start a conversation about the assumptions behind the quote, such as cycle time, yield and margin.
When is a spreadsheet enough, and when do I need should-cost software?
For a handful of parts, a well-maintained spreadsheet can be enough. Software starts to pay off when many people cost many parts, when rates and material prices need to stay current across locations, when you want costs rolled up through a BOM, or when you need to show a supplier and your own management exactly which assumptions drive the number.
How is Emithran different from enterprise costing tools?
Established enterprise costing tools are strong on broad process libraries and automated geometry-based costing. Emithran combines should-cost with BOM management and supplier intelligence on one platform, and ships with India-native labour, material and supplier data. Enterprise tools can offer broader process coverage today, so the fairest test is to cost the same parts in each tool.
How is my data handled, and is this suitable for defence programmes?
Data-handling and security terms are set out in Emithran's Privacy Policy and Data Processing Agreement. If your programme has specific confidentiality, export-control or ITAR requirements, raise them with the team before onboarding so they can be reviewed against your requirements.
Learn more about should-cost analysis
What is should-cost analysis?
Definition, components and when to use it
How to do a should-cost analysis
Step-by-step guide for manufacturers
Build a should-cost model in Excel
Spreadsheet approach and where AI helps
Should-cost glossary entry
Short definition and related terms
For the wider discipline behind these models, see our cost engineering software page.
See a should-cost model built on one of your parts
Book a 30-minute live walkthrough with Emithran's engineering team. Bring a drawing, a BOM line or a supplier quote you want to test, and we will show how the model is built and what it tells you.