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Assisting the Discipline of Cost Engineering Through Standardization, Education, and Certification

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The Society's Vision & Mission

MISSION STATEMENT

The Society of Cost Engineers is dedicated to advancing the discipline of cost engineering through standardization, education and certification. Focusing on the day-to-day practitioner, we empower our members with the knowledge, skills and resources to deliver accurate, efficient and value-driven solutions that support excellence and project success across all industries worldwide.

VISION STATEMENT

To be the global leader in cost engineering, driving transformative practices utilized by the growing number of professionals in the workspace, that shape the future of project performance and inspire a community of professionals committed to precision, collaboration and strategic insight.

MORE DETAILS

The Society of Cost Engineers, LLC is a professional organization for Cost Engineers. The Society has been designed to promote and assist the discipline of Cost Engineering through standardization, education, and certification. The Society of Cost Engineers, LLC is intended to be a member-driven organization. The membership has the ability to help define the course of the organization through the open exchange with the leadership via the forums, comments, and contact us links.

The Society of Cost Engineers, LLC attempts to promote both individuals and the Cost Engineering discipline by posting resumes as well as job openings.

The Society of Cost Engineers, LLC, while being unbiased, will continue to work with industry leads to ensure that it stays relevant, up to date, and able to identify the best costing tools available in the market or self-made to make it possible to identify what is the best solution for each enterprise. We will continue to work with these leaders to provide benefits to our members in the form of discounts, training, expert advice examples, etc.

The GOAL of the Society of Cost Engineers, LLC is to standardize cost engineering terms, procedures, and certification and to deploy the cost transparency culture around the world.

What is Should Costing?

Should Costing is the practice of determining the "SHOULD COST" of a product, component, or service prior to issuing a Request for Quote. Should Costing is similar and relies on some of the same principles of the typical Cost Estimating, but is entirely different.

Should Costing is an attempt to predict the cost/price of your supplier based on Best-in-class processes. Once you have this established, you then use Fact-Based Negotiations for your purchased components, assemblies, or services.

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Cost Cafe

The Cost Café is now open!
Grab a drink, take a 15-minute break (or maybe an hour), relax, and join us at the Cost Café. We are starting a new series for cost professionals everywhere. Discussing, debating, and enjoying all things cost engineering. For updates, become a free member on the Society of Cost Engineers website, and follow the Society of Cost Engineers on LinkedIn for updates.

To watch previous episodes, become a premium member and unlock other content.

Introduction to Hypernomics and Hyernomica

On November 21, 2024, at 0900 PT, Doug Howarth will present a webinar featuring Hypernomics and their flagship software program, HypernomicaTM.

 

Hypernomics is an advanced economic modeling system that expands on traditional supply and demand concepts by incorporating multi-dimensional data to reveal deeper insights into market dynamics and value creation. Unlike standard economics, which typically focuses on two-dimensional supply and demand curves, Hypernomics analyzes multiple variables simultaneously—such as price, demand, value, costs, and more—allowing for a richer, more complex understanding of economic systems.

 

Blog

Solving Problems by Seeing Them More Broadly: Using Inexpensive Devices

For a successful technology, reality must take precedence over public relations — Richard P. Feynman.

Followers of this column know I’ve long taken exception to our development of long-range hypersonic missiles.

Russia discovered these devices were not all they were touted to be the hard way when, on May 16, 2023, Ukrainian defenders said they shot down six Russian Kinzhal hypersonic missiles, which cost about $10M each. Making expensive devices doesn’t serve any purpose if they prove ineffective.

Even if they work correctly, it makes little economic sense for the USG to make them, as the added distances they travel more than offset the number our government can buy. Simply put, the Demand Curve for Air-to-Surface missiles is very flat. We were able to buy one hypersonic AGM-183A (ARRW), but over the 20 years ending at the end of 2016, we purchased nearly 34,000 supersonic AGM-114s. The value of the single ARRW was $42M; Hellfires totaled over $5B.

I remember watching the coverage of the first Gulf War when the F-117A I had worked on for so long dropped glide bombs with incredible precision. Years later, I wondered if I could quantify them along with missiles. I found that, not incidentally, those devices are dramatically cheaper than their powered counterparts.

Below, at left, in the Green Value Space, a study I did in 2016 discovered that for any given range (in km) and momentum (MV in kgkm/h), glide bombs cost 1/8 of comparable powered missiles over 20 years.

On the chart’s Red Demand Plane, the Upper Demand Frontier depicts the limiting Price Barrier that air-to-surface devices faced over the period. One might think this line would run on forever, but history shows that markets have saturation barriers, another boundary called the Outer Demand Frontier.

Observe that all devices here are projectiles sent toward the enemy. One of the cheapest types of these in the USG inventory is the NATO 5.56 bullet. While estimates vary, the approximations converge on the government having some 10B of these in our stockpiles, which sell for about $0.39 each (https://blackbasin.com/ammo-prices/5-56-nato/). We drew the Outer Demand Frontier when we connected that ordered pair to the rightmost point on the Upper Demand Frontier.

It’s helpful to know that in the timeframe studied (almost a decade ago), the Glide Bombs did not touch the Outer Demand Frontier as a group. In theory, that means we could afford more of them (though clearly, a data update would be helpful).

Expanding the use of glide bombs will not be appropriate for every mission. We will always need some long-range powered devices to take targets from afar.

But one could imagine low-cost, low-signature drone designs sent by the dozens, carrying new or existing glide bombs at a fraction of the existing missile costs, with far less exposure to our valuable crew.

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