This whitepaper discusses the significance of should-cost analysis as a proactive cost-reduction strategy in aerospace and defense, contrasting it with traditional cost-cutting methods that address expenses post-incurrence. Emphasizing on optimizing operational efficiency and profitability, it outlines the process of should-cost analysis—from design phase to production—highlighting its role in improving cost management and enabling effective negotiations. Through a case study, it demonstrates the application of should-cost analysis in a New Product Introduction (NPI) program, underlining the importance of early integration of cost engineers and comprehensive cost management strategies.

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