Cost breakdown
A supplier's quote split into its parts: material, processing, tooling, overhead, logistics and profit, so each line can be checked on its own.
Also called: CBD, Open book costing, Cost breakdown structure
A cost breakdown, or CBD, is what you ask a supplier for when a single unit price is not enough. Instead of €3.20 per part, you get something like:
| Line | € per part |
|---|---|
| Material (PA66 GF30, 42 g) | 1.18 |
| Injection (28 s cycle, 2 cavities) | 0.94 |
| Tooling amortization | 0.31 |
| Packaging and transport | 0.22 |
| Overhead and scrap | 0.27 |
| Margin | 0.28 |
Now the questions are specific. Is 42 g right, or does the drawing say 36 g? Why 28 seconds when a comparable part runs at 22? Is the tool still being amortized in year six?
Getting one
Large OEMs make CBDs a condition of sourcing. Smaller buyers often get a polite no, or a breakdown that has been reverse-engineered from the price. A breakdown where every line ends in a round number usually tells you that.
The trick is not to treat the CBD as the truth. Treat it as the supplier’s version, and compare it to your own should-cost. The gaps between the two are the negotiation.
Keeping it alive
A CBD collected at nomination goes stale quickly. Material prices move every month, the tool gets paid off, volumes change. If the breakdown is not updated, the price only ever moves in one direction: up, when the supplier asks.