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Retrospective on a layoff

Retrospective on a layoff

This past February, I was officially laid off for the first time in my career. While I recognize that I’m fortunate to have only been laid off once (at least so far) in 13 years, it was a new experience that I don’t know if I was prepared for. While I know that everyone processes things differently, this is how I got through it, peppered in with the benefit of hindsight.

A Cost Engineer by Another Name

A Cost Engineer by Another Name

If you are like me, you’ve probably often had to explain what exactly a Cost Engineer or Cost Estimator does.  You probably have to explain this to friends and family that have never set foot into a plant or job site and have no idea what you are talking about.  I often try to explain it in terms of a person or job they may be more familiar with.

Cost Engineering in Procurement: Three Methods That Increase Business Value

Cost Engineering in Procurement: Three Methods That Increase Business Value

The primary goal of procurement is to efficiently realize external business value creation, thereby generating added value for the company.   to obtain detailed insight into product cost structures and manufacturing processes within the scope of a purchased part price analysis. Cost engineering methods are used to perform the purchased part price analysis, such as target costing or activity-based costing.

Why Function Points?

Why Function Points?

The ‘should cost’ of a software solution is heavily influenced by the a very few factors e.g. size, productivity, application. This makes estimation a relatively easy process although there are always concerns when is comes to establishing ‘size’. This short thought piece makes the case for the use of Function Points as the standard sizing mechanicals for Software Should Cost Analysis

The Organizational Risks of not performing Robust Should Cost Analysis

The Organizational Risks of not performing Robust Should Cost Analysis

Managing business transactions can be a challenging effort for Organizations. Making the right decision to provide the best value to your Customers, your own Stakeholders and protecting your Suppliers is part of the due diligence that sets excellent organizations apart.

Lowering the risk associated with these decisions can be significantly aided by applying the principals of robust “Should Cost Analysis”. Understanding what you are offering your Customers and what you expect from your Suppliers helps insure that the needs of your internal Stakeholders are met. Ideally, Should cost analysis becomes a tool to communicate to all involved and identify risks (and opportunities). Perhaps the worst case scenario for a contract is “Termination for Cause” that opens your organization to pay whatever it costs to fulfill. There are cases that have destroyed fairly large companies for this failure.        

Cost Allocations: Gaining Actionable Insights With Detailed Calculations

Cost Allocations: Gaining Actionable Insights With Detailed Calculations

Organizations face growing pressure to control costs and enable effective financial management of their resources to deliver value. Business leaders need visibility into the cost of the products and services they provide to know if their business is profitable at a granular level.  To get these insights, many implement a cost allocation methodology to make business units more accountable for the activities they perform and assigns the costs associated with these activities to the business units or cost centers based on their appropriate share of the cost.

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