How the false consensus effect eats up your profit We succumb to it in our private lives and at work. Whole departments and companies can fall into its clutches. The false consensus effect, discovered by Lee Ross and published with two colleagues in 1977, describes...
Cost Engineering is often described as part science and part art. The science aspect is easily observed. We all understand the importance of collecting, normalizing, and analyzing historical data to support estimating a future program. We can all proficiently navigate the lake of R2s, coefficients of variation, regression equations, and the like. But what about the art of cost engineering?
In this interview, Society of Cost Engineers founder Jerry Collins explains to Flexpipe project manager Temie Fessa how modular material handling systems have helped him maximize efficiency and profits.
The CFOs who are bold will candidly describe their managerial accounting practices and systems as aged and Medieval at the extreme. The bold ones are unafraid to admit that their existing reported information is both flawed with inaccurate costs and incomplete by not providing P&Ls by customer including channel, selling, customer service, and marketing related “costs to serve” which are arguably more important than product costs.
The war in Ukraine, and corresponding economic sanctions against Russia, are tightening the supply of critical resources, shutting factories, and fueling inflation. And pressure from the private sector is cutting Soviet exports even further. Volkswagen and other global brands are closing factories in the region, Boeing is suspending orders for Russian titanium, and SWIFT is blocking some Russian banks from its financial network, which could prevent cash-strapped Russian suppliers from shipping goods.
This new chapter of supply chain instability requires executives to reevaluate their options quickly to maintain production and defend against margin pressure. Here’s how some companies are using manufacturing intelligence to identify immediate alternatives.
And he writhed inside at what seemed the cruelty and unfairness of the demand – C.L. Lewis.
Many products sink due to scarce sales. Uninspected, market boundaries seem murky.