Aerospace engineering has a high production process. As a driven and competitive market, complex nature of aerospace engineering process requires exact estimation of costs. There are different approaches that used for cost calculation during manufacturing process of aerospace engineering vehicles and parts. But there is a highly developed analysis for cost estimation: Should costing.
Should cost analysis that is known as should costing is being used since a few decades. It is a solution that adopted by different governmental systems. Estimation of costs with should costing is involved of material, labor and profit margin. Manufacturing of things is possible. But manufacturing of things with low cost is not possible. Manufacturing with low cost by using should costing is possible. But it takes period of time and not to be taken easy.
Having lower costs is main idea of manufacturing in all industries. However, it is more critical in aerospace engineering industry. Due to complex supply chain and long development period, it is really important to identify production costs. Should costing is a process that can be used for modifying manufacturing process. Main idea of estimation is not having numbers, having numbers that is defined how it is reached.
Beyond cost estimation, should costing led to have lower costs by analyzing all stages of production. Continuous improvement is main philosophy of should costing process in aerospace engineering. Accurate cost estimation is calculated by broad scope and user collaboration. Purchase department, supply chain department, sales and marketing department, cost reduction department, manufacturing engineers and coordinating engineers are main player of should costing process.
Every milestone of production and focusing technical details are main management approach of should costing. Using computer models during design stage and creating prototypes are cyber and real steps of this process during pre-manufacturing and post manufacturing.
Cost calculation by using should costing cannot be sustainable on its own. It requires broad knowledge of engineering departments. Historical approaches are important, too. As a manufacturing philosophy calculation does not work in practice, experience is always needed. Capacity calculation, process optimization and material supply chain are only a few topics that is needed in should costing process.
Big manufacturers and suppliers can use should costing process for optimization of production process. But it is not simple or easy to use. One time methods does not work for should costing processes. Mentality of should costing requires patience and continuous improvement. Exact calculation is main target of this process. Not to change “should cost” to “will cost” is main aerospace engineering objective.
In the past Boeing 737 had 400 thousand parts. And today Boeing 747-8 has nearly 6 million parts. When you think there are 13.000 Boeing aircrafts in worldwide, it is really critical to have a robust calculation model for aerospace engineering. Taking costs under the control and performing standards in proper level requires hard work of aerospace engineering.
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