Does anybody still use the “should-cost” model? by Jon Hansen

Posted on November 4, 2013

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In this week’s guest soundbite, John Moyer and Bryce Heller from A.T. Kearney Procurement and Analytic Solutions explain how to develop a should-cost model. The full podcast can be heard here: http://www.atkearneypas.com/knowledge/podcast.html

As you all know, every Monday at 12:00 noon EST over the virtual airwaves of the Blog Talk Radio Network, Buyers Meeting Point’s Kelly Barner joins us to share the news and upcoming events from the world of procurement.

Kelly has always been adept at introducing both interesting and controversial subjects each week through our weekly guest soundbite.  This Monday’s segment was no different as she shared with us an excerpt of a podcast featuring A.T. Kearney’s John Moyer and Bryce Heller extolling the virtues of utilizing the “should-cost” model.

The should-cost model or analysis process was originally developed by the U.S. Department of Defense to “improve the government’s ability to monitor pricing and drive cost reductions.”  Right off the bat this should tell us everything we need to know about the model, including why it is a bad idea in terms of achieving it’s purported desired outcome.

Rather than provide a lengthy dissertation on why I think the way I do about should costing – and based on preliminary comments from the social media world I am not alone – click on the image below to access the segment to hear both my commentary as well as the commentary from Mr. Moyer and Mr. Heller.

BMP Nov. 4th 2013 Segment

As always, I welcome your comments either here in this forum or directly on the segment show page on Blog Talk Radio.

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Posted in: Commentary