Build a should-cost model for a purchased part
A bottom-up estimate of what a part should cost to make, used to challenge supplier quotes with facts.
The prompt
Help me build a should-cost model for a part I buy, so I can challenge the supplier's price.
Part description: [WHAT IT IS, DRAWING DETAILS, DIMENSIONS, TOLERANCES, FINISH]
Material: [TYPE, GRADE, GROSS WEIGHT INCLUDING SCRAP, CURRENT PRICE PER KG OR UNIT]
Likely manufacturing process: [e.g. stamping, CNC machining, injection molding, assembly - steps if known]
Supplier location: [COUNTRY OR REGION - affects labor and overhead rates]
Annual volume and batch size: [UNITS]
Current quote: [PRICE, AND ANY BREAKDOWN THEY PROVIDED]
Rates I have: [LABOR RATE, MACHINE HOUR RATE, OVERHEAD %, MARGIN - or "unknown"]
Build the model in layers:
1. Material: net and gross weight, scrap or yield loss, material price.
2. Process: each operation with cycle time, machine rate, labor content, setup time amortized over batch size.
3. Tooling amortization, if any.
4. Overhead, SG&A, and a reasonable margin range.
5. Packaging and freight to our Incoterm.
Rules: use my rates where given. Where I don't have one, show the formula and mark the input [ESTIMATE - VALIDATE], never present a guessed rate as fact. Show every calculation so I can change inputs.
Return:
1. A cost breakdown table: Element | Basis | Calculation | Cost per unit.
2. Should-cost vs. quote, and the elements most likely driving any gap.
3. The 3 inputs the result is most sensitive to.
4. Fact-based questions to ask the supplier in negotiation (e.g. cycle time, scrap rate, material price basis).
Highlighted [brackets] are blanks to replace with your own details.
Fill in the blanks and use this promptMore Finance & Accounting prompts
What to fill in
- WHAT IT IS, DRAWING DETAILS, DIMENSIONS, TOLERANCES, FINISH
- COUNTRY OR REGION - affects labor and overhead rates
- UNITS
- PRICE, AND ANY BREAKDOWN THEY PROVIDED
- ESTIMATE - VALIDATE
How this prompt is built
This prompt follows the Few-Shot structure (Few-shot prompting). A few-shot prompt includes one or more worked examples of the input and the output you want, so the model can copy the pattern instead of guessing it.
Related prompts
- Build a budget vs. actual variance analysis in ExcelSets up a budget vs. actual sheet with correct variance formulas, favorable/unfavorable logic, materiality flags, and a YTD view.
- Reconcile a media invoice against the insertion order and deliveryA line-by-line check of a vendor invoice against the IO and ad server data, with discrepancies, makegoods, and a dispute note.
- Build a profit-and-loss estimate for a book acquisitionA title P&L that tests the advance, print run, pricing, and royalties to show the break-even point and whether an offer makes sense.
- Prepare a progress billing pay application with retainageA schedule of values and monthly pay application that matches work in place, handles retainage and stored materials, and avoids rejection.