For engineer-to-order businesses that manufacture products designed by their customers, the traditional CPQ process does not work. By its very nature, the CPQ process collects a set of pre-defined product options or features (Configure), then sums up the prices for each item selected (Price), and then presents the final pricing to the customer (Quote).
The Cost Estimator’s job is to cover all the company’s expenses, potentially including inefficiencies. His job is assisting the organization to get the best sales price he can and still win the business. Conversely, the Should Cost Engineer’s responsibility is the help his organization procure products at the best price possible, ensuring they get the product they requested, usually utilizing benchmark data.
The Value of Cost Engineers: Three Steps to More Profit and Growth of Companies
Every single business decision is subject to constant cost pressure not to jeopardize the company’s future profit margins. The conditions are often difficult: Suppliers are expected to produce close to their customers’ locations and with just-in-time production processes. Additional cost pressure from customers is ever present due to extended payment terms, risk liability, ‘quick savings’ or ‘pay to play’ schemes. These conditions influence the success of growth and profitability. Many companies no longer want to continue to make their decisions while flying blind. They all ask the same question: How can we adapt processes and IT structures to improve speed and accuracy in costing and quoting?
Today we are fortunate enough to have a guest blog from Dr. Christian Smart. He has given us permission to post the first chapter of new book ” SOLVING FOR
PROJECT RISK MANAGEMENT UNDERSTANDING THE CRITICAL ROLE OF UNCERTAINTY IN PROJECT MANAGEMENT”
The cost of a product is one of the key criteria for product development often backed by ambitious targets during the design phase. When sustainability is mentioned, the first thing that comes to mind for most people is usually, how much is that going to cost me… But is it always a trade-off between cost and sustainability? Or can these two different requirements complement each other to make a superior product that meets both requirements?
As the much-anticipated end of 2020 fast approaches, I thought I’d take a short minute to reflect on a very different year.
We all know and have our own personal experiences with the pandemic. It impacted our health in more ways than just its known symptoms. We have missed out on many family activities, everything from sharing baby’s firsts to grandparents lasts. A very terrible situation for all.
This year marked the start of my retirement. In my past I worked for two of the largest companies in the world GM (and its subsidiaries) and Johnson and Johnson. I am enormously proud and happy to have worked for such great companies. If it were not for these two companies, I would not have been able to see the world, learn what I have learned and most importantly move on to this next chapter.