Carbon & Cost Consulting GmbHCost Engineering · Should Costing · Design-to-Cost

Engineering value.
Redefining cost.

Cost Engineering, Should Costing and Design-to-Cost for manufacturing companies.

We create transparency across materials, manufacturing processes, investments, labor, overhead and logistics — providing the fact-based cost intelligence required for better sourcing, engineering and supplier decisions.

CNC machining centre and precision machined components in a manufacturing plant
Should-cost model · indicative structure100%
Material42%
Manufacturing21%
Labor12%
Tooling / Investment9%
Overhead8%
Logistics4%
Margin4%

How can we support you?

Select a capability

Should Costing

Bottom-up cost models for products, components and manufacturing processes, built from process times, material usage, machine rates, labor rates, tooling and overhead assumptions.

View section
  • Should Cost Analysis
  • Supplier Cost Breakdown
  • Cost Benchmarking
  • Make-or-Buy Analysis
  • Cost Driver Analysis
  • Negotiation Support
Proprietary Cost Engineering Technology

Cost Engineering.
Powered by Costixx.

From data. To cost. To action.

Carbon & Cost combines hands-on manufacturing expertise with Costixx, our proprietary Cost Engineering technology for bottom-up cost modeling, supplier analysis, scenario simulation and opportunity identification.

Client-specific dataCost Engineering workflowMeasurable savings
  1. 01
    BUILD
    Bottom-up cost model
  2. 02
    CHALLENGE
    Supplier quote & gap
  3. 03
    SIMULATE
    Sensitivity & scenarios
  4. 04
    OPTIMIZE
    Target cost & levers
  5. 05
    TRACK
    Opportunity tracking

Built around your cost reality — not generic database assumptions.

Project and client-specific cost data can be prepared and maintained for materials, components, machine rates, labor rates and regional manufacturing assumptions.

  • Materials
  • Components
  • Machines
  • Labor
  • Countries
  • Currencies
Costixx materials database with prices, units, categories, sources and CO2e data source per material
Costixx platform view — anonymised project data
Select a view — click a tab to explore

Challenge supplier pricing with facts.

Rebuild supplier pricing from the manufacturing side and identify the gap between quotation and calculated Should Cost by cost element.

Supplier quote
EUR 197.82
Should cost
EUR 152.80
Identified gap
–22.8%
Costixx platform view — anonymised project data
Costixx cost build-up waterfall from material to DDP cost per piece
Costixx quote gap waterfall: supplier quote EUR 197.82 bridged to should cost EUR 152.80
Manufacturing expertise

Cost models built from process knowledge, machine assumptions, cycle times, tooling concepts and production economics.

Client-specific cost intelligence

Cost intelligence based on actual client and project data — not generic benchmarks or database assumptions.

Actionable cost engineering

From supplier quotation and Should Cost to target cost, optimization opportunity and measurable financial impact.

Explore the technology

See what sits behind the analysis.

Explore the complete Costixx Cost Engineering platform, including cost modeling, databases, supplier analysis, scenarios, target costing and opportunity management.

Carbon & Cost Consulting — expertise & deliveryCostixx — technology & cost intelligence
01Should Costing

Know what
it should cost.

We develop detailed bottom-up cost models for products, components and manufacturing processes. Each model is built from the actual process route — not from price history — so every cost element can be reviewed, challenged and discussed with suppliers.

Five-axis CNC machining of a precision metal component
Cost elementShare of total cost
  • Material
    Raw material, scrap, purchased parts
    34%
  • Manufacturing
    Process route, cycle time, yield
    18%
  • Labor
    Direct labor, shifts, regional rates
    11%
  • Machine
    Machine hour rate, utilization
    10%
  • Tooling
    Tool cost, amortization, lifetime
    7%
  • Investment
    Equipment, automation, capacity
    6%
  • Overhead
    Manufacturing and SG&A overhead
    8%
  • Logistics
    Packaging, freight, duties
    3%
  • Margin
    Supplier profit expectation
    3%

Illustrative structure — actual distribution depends on part, process and volume.

Included in an engagement

  • 01Should Cost Analysis
  • 02Supplier Cost Breakdown
  • 03Cost Benchmarking
  • 04Make-or-Buy Analysis
  • 05Supplier Negotiation Support
  • 06Cost Driver Analysis
Explore Should Costing
Cost Engineering Methodology

From Should Cost
to True Cost to Lean Cost.

We don't stop at the model. We validate cost on the shop floor and then optimize the underlying product and manufacturing process.

01Model

Should Cost

What should it cost?

Develop a bottom-up cost model using product specifications, drawings, BOM data, material prices, manufacturing assumptions, regional rates, process parameters and supplier information.

Key inputs
  • Drawings & BOM
  • Material prices
  • Process assumptions
  • Machine rates
  • Labor rates
  • Tooling
  • Overhead
  • Logistics
Fact-based should cost
Data-based cost model
02Validate

True Cost

What does it actually cost?

Validate the cost model directly at the manufacturing site using actual production conditions and measured process data.

Key validation areas
  • Actual machines
  • Actual process route
  • Actual cycle times
  • Actual labor content
  • Actual material consumption
  • Actual scrap & yield
  • Actual tooling
  • Actual energy consumption
  • Actual capacity & utilization
  • Actual manufacturing conditions
From assumptions to actual data.
Validated true cost
On-site data validation
03Optimize

Lean Cost

What could it cost?

Use the validated manufacturing baseline to identify and quantify cost optimization opportunities across product and process.

Optimization areas
  • Cycle time
  • Material usage
  • Scrap & yield
  • Labor content
  • Automation
  • Machine utilization
  • Process flow
  • Tooling
  • Logistics
  • Product design
  • Design-to-Cost
  • VA/VE
Optimized lean cost
Quantified opportunity roadmap
Cost & process optimization
Should CostCostixx Cost Modeling
True CostCostixx + On-Site Validated Data
Lean CostCostixx Target Cost, Sensitivity & Opportunity Tracking
Model the costValidate the costOptimize the cost
Should CostTrue CostLean Cost
Selected Engagements

See the methodology
in practice.

From the initial Should Cost model to physical shop-floor validation and engineering optimization — selected engagements show how cost transparency is converted into implemented savings.

Anonymised client engagements
Cost engineer observing an actual machining process on the manufacturing shop floor

Cost is created on the shop floor.
That's where we validate it.

Our Cost Engineers work hands-on at the manufacturing site, physically following the product through the production process and validating the assumptions behind the cost model against actual shop-floor conditions.

On the shop floor
ObserveActual manufacturing process
MeasureCycle times and production conditions
ValidateMachines, labor, material and process assumptions
ChallengeOEE, line balance and manufacturing setup
Select an engagement
Client
European Personal Protective Equipment Manufacturer
Product
Safety Footwear — Safety & PPE
Manufacturing location
Vietnam
Scope
2 products · 1 supplier · 1.8 million annual volume
01 — Model
Supplier quote
€12.20 / pc
Should cost
€10.05 / pc
02 — Validate
4 Days
On the shop floor

Cost Engineers physically follow the product through the production process and validate the model against actual manufacturing conditions.

True cost
€10.42 / pc
Validated manufacturing reality
03 — Optimize
Lean cost
€9.89 / pc
Optimized manufacturing potential
04 — Implement
Identified annual opportunity
€4.158m
Implemented savings
€3.294m
Quote
€12.20 / pc
Should cost
€10.05 / pc
Validated reality
€10.42 / pc
Optimized cost
€9.89 / pc
What we found on the shop floor
  • 01Material cost improvement
  • 02Line balancing
  • 03OEE
  • 04Process optimization
Engagement result
€4.158m
Identified annual opportunity
€3.294m
Implemented savings
4 days
Physical on-site validation
4 weeks
Total project duration

The model doesn't define reality.
The shop floor does.

True Cost replaces assumptions with validated manufacturing data before optimization begins.

ModelGo to the shop floorValidateOptimizeImplement
Should CostTrue CostLean CostImplemented Savings

Selected anonymised client engagements. Results shown relate to the specific project scope and conditions and should not be interpreted as typical or guaranteed savings.

What is the true cost
behind your supplier quote?

Start with a Should Cost model. Validate it where the cost is created. Then identify what the product could cost.

02Should Costing as a Service — SCaaS

Should costing. On demand.

You send product information, drawings, BOMs and any available supplier data. We perform the analysis remotely and return a detailed, fact-based should-cost model — without setting up a traditional consulting engagement.

Typical delivery time
5–10 days

Analyses can typically be delivered within 5–10 days, depending on part scope and data availability.

  1. 01

    Upload / Provide Data

    Drawings, BOMs, specifications, volumes, available supplier quotes.

  2. 02

    Product & Process Analysis

    Material selection, process route, cycle times, tooling concept.

  3. 03

    Should Cost Calculation

    Bottom-up model with regional machine, labor and overhead rates.

  4. 04

    Cost Driver Review

    Identification of the elements that actually determine the price.

  5. 05

    Results & Recommendations

    Documented cost model, assumptions and improvement levers.

  6. 06

    Supplier Negotiation Support

    Argumentation base and fact sheets for commercial discussions.

Request a Should Cost AnalysisAn efficient alternative to traditional consulting engagements.
03Comprehensive Cost Engineering

Cost engineering across the product lifecycle.

Engineering decisions and cost outcomes are inseparable. We work along the full lifecycle, from the first concept assumptions to series production and re-optimization.

01

Concept

Cost commitment high

Target cost definition, make-or-buy direction.

02

Design

Cost largely determined

Material, process route, tolerances, complexity.

03

Sourcing

Price negotiated

Quote analysis, benchmarking, supplier selection.

04

Industrialization

Investment fixed

Tooling, automation, capacity, line layout.

05

Production

Cost realized

Cycle time, yield, scrap, overhead absorption.

06

Optimization

Cost recovered

Value engineering, re-sourcing, process improvement.

Target Costing
Should Costing
Design-to-Cost
Value Analysis / Value Engineering
Cost Benchmarking
Process Costing
Supplier Assessment
Manufacturing Analysis
Investment Analysis
Product Cost Optimization
04Design-to-Cost

Cost is designed
into the product.

The largest cost opportunities usually originate before sourcing and production. Material choice, process route, tolerances and assembly concept define the cost band a supplier can quote within — long before a price is negotiated.

Current design
  • MaterialCurrent
  • Manufacturing ProcessCurrent
  • Part ComplexityCurrent
  • ToleranceCurrent
  • AssemblyCurrent
  • ToolingCurrent
Optimized design
  • Reduced material usageOptimized
  • Simplified processesOptimized
  • Lower cycle timeOptimized
  • Reduced toolingOptimized
  • Improved assemblyOptimized
  • Lower total product costOptimized

Savings potential is assessed per part and per process — no generalized percentage claims.

Automated robotic body-in-white assembly line in a manufacturing plant

Cost is made on the shop floor

Every model we build is traceable to a process, a machine, a cycle time and a rate.

0+
Projects delivered worldwide
0m+
Client savings
0%
Faster than traditional consulting
0%
Average carbon footprint reduction
05Supplier Analysis

Turn supplier quotes into facts.

Understand the material, process, labor and investment assumptions behind supplier pricing. We rebuild the quotation from the manufacturing side, so purchasing enters negotiations with a documented position instead of a price comparison.

Quote vs. should-cost model · illustrative, EUR / part
Cost elementQuotedModelDelta
Raw material, 1.94 kg @ steel index3.122.74−0.38
Stamping, 42 strokes/min, 3 stations1.080.86−0.22
Machine hour rate, 400 t press78.0064.50−13.50
Direct labor, 0.14 h0.620.55−0.07
Tooling amortization, 400k parts0.350.21−0.14
Overhead & SG&A0.710.58−0.13
Packaging & freight0.190.190.00

Capabilities

  • Supplier Cost Breakdown
  • Quote Analysis
  • Cost Driver Validation
  • Machine Rate Analysis
  • Labor Rate Benchmarking
  • Material Benchmarking
  • Tooling Validation
  • Investment Validation
  • Supplier Negotiation Preparation
06Industries

Applied where parts are actually made.

Cost models are only as good as the process knowledge behind them. Our project experience spans discrete manufacturing across Europe, Asia and North America.

Automotive

High volumes, tight tolerances and multi-tier supply chains where a fraction of a cent per part is material.

  • Stamped and formed metal parts
  • Injection moulded interior and exterior parts
  • Die cast structural components
  • Tooling and investment validation
  • Tier-1 / Tier-2 cost cascading
  • Annual productivity negotiations
07Manufacturing Expertise

Cost engineering requires manufacturing knowledge.

Every cost model rests on process assumptions. We build them from the technologies used to make the part — cycle times, machine classes, tooling concepts and yields — not from statistical price benchmarks.

Horizontal injection molding machine with open two-plate mold, visible core and cavity and robotic part removal
Injection Molding

Injection Molding

Primary cost drivers

Cavitation, cycle time, shot weight, tool cost, machine tonnage

Cost is driven by cavity count, cycle time and machine size. We model shot weight including runners, regrind handling, cooling time and tool amortization over realistic lifetime volumes.

08Carbon Intelligence

Connect cost and carbon.

The manufacturing data behind a cost model — material mass, process route, energy consumption, transport and supplier site — is the same data required for carbon accounting. We use one data set for both.

  • Scope 1–3
  • Product Carbon Footprint
  • CBAM
  • Supplier Carbon Transparency
  • Decarbonization Opportunities
Input 01
Material
Grade, mass, recycled content
Input 02
Manufacturing
Process route, yield, scrap
Input 03
Energy
Consumption, grid mix, site
Input 04
Transportation
Mode, distance, load factor
Input 05
Supplier
Site data, primary vs. secondary
Input 06
CO₂e
Product carbon footprint
09About / Expertise

Manufacturing practice combined with Cost Engineering leadership.

Carbon & Cost Consulting combines more than three decades of Cost Engineering experience with hands-on manufacturing, supplier and procurement expertise across international markets. Our work is grounded in how products are actually manufactured, how suppliers build their quotations and how engineering decisions translate into product cost.

Mehmet Ali Öztopcu, Founder and Managing Director of Carbon & Cost Consulting, seated at a wooden table in his office
Leadership

Mehmet Ali Öztopcu

Founder & Managing Director
Carbon & Cost Consulting GmbH
Former Global Head of Cost Engineering
EMEA & North America

Built and led international Cost Engineering capabilities supporting manufacturing, engineering, procurement and supplier organizations.

0+
Years
Cost Engineering & Manufacturing
0+
Supplier & Manufacturing Site Visits Worldwide
Global
Project & Leadership Experience
Europe · North America
Asia · North Africa
Cost Engineering
  • Should Costing
  • Target Costing
  • Design-to-Cost
  • Product Cost Optimization
Manufacturing
  • Manufacturing Process Economics
  • Cycle Time & Machine Rate Analysis
  • Tooling & Investment
  • Production & Assembly
Supplier & Procurement
  • Supplier Cost Breakdown
  • Quotation Analysis
  • Supplier Assessment
  • Negotiation Fact Base
Value Engineering
  • VA/VE
  • Process Optimization
  • Material Optimization
  • Design Optimization
Industry Experience

Automotive · Aerospace · Telecommunications · Industrial Manufacturing · Electronics · Medical Technology · Consumer Products

What should your product really cost?

Let's build the fact base behind your next sourcing, engineering or supplier decision.