Cost Engineering

Question 1

Types of cost engineer?

Answer 1

Project non-reoccurring cost

Product cost

Life Cycle cost

Question 2

Product cost drivers?

Answer 2

Engineering: Design, Manufacture, Operations, Capability
Purchasing: Contracts, Margins, Transport, Region, Handling
Finance: Depreciation/Amortisation, Overheads, Forecasts, Factory Cost Rates
Project/Business: Exchange rates, Offset, Partnerships, Sales forecasts/volume, Economic Assumptions

Question 3

Cost engineering throughout a process…

Answer 3

Capability Acquisiton: do it cheaply
Bidding: Cheapest possible option that meets brief likely to be chosen
Product introduction: Make sure targets are met (both cost and time)
CI: Areas for improvement (reducing cost, faster manufacture)

Question 4

What is cost engineering?

How is it done?

Answer 4

Cost estimates, analysis, reduction etc.

Cost models, estimates, and databases