Tag Archives: cost value engineering

How to report the cost status of a R&D Project

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The R&D Project cost and schedule status are the most important KPI’s for a procurement organization. Therefore, it is not surprising that the head of procurement or CPO focus his interest of these two areas. If you are the procurement representative in an R&D project, you should consider this. Many of you have faced already the balancing act to deliver the key message and not getting lost in all the details. I developed a PowerPoint template which addresses the expectations from senior management. This template was already used in many different reviews and is proven best practice.

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Why Product disassembly is an important lever in the Design to Value process

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First of all I have to excuse that there was no new articles posted for the last view months. Corona did also impact us and home schooling, parallel work etc. did impact us as well and there was almost no time for any other activities. Now, as the situation has relaxed, you can expect again some insights in modern procurement engineering and cost / value engineering approaches.

Today I want to share some thoughts why „product disassembly“ is an important lever in the design to value process and how you can use it to generate a competitive advantage. So, why should you do product disassembly?

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Are alloy wheels totally overpriced?

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Once in a live most of the car owners need to buy wheels for his car. The question is: Which price is reasonable for the product? Which kind of wheels to choose? In this article you will find answers on that question. Additionally, you get an overview about a cost structure of an aluminum casting product using bottom up cost calculation method. We think it’s a perfect example to show how cost value engineering contributes to the company’s success and could also help you in your private life.

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Why to employ Cost Engineers while Procurement Engineers are available?

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What is the difference between Procurement and Cost Engineers and is it worth to have both in the team setup? This will be very roughly discussed by using an example and providing a guideline when this might make sense for a company. As always there is no simple answer. Some facts might help to make the decision: size of company; size of commodity, complexity of commodity & skill set of procurement engineers. Fact is that both roles (should) have at least 50% overlap in their expertise.

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Procurement Engineering from supplier point of view

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First guess probably everyone has when he think about procurement engineering is cost saving for OEM/customer. Sure, this is not the only value for the customer there are some more. But one advantage might not be present immediately. The benefit for the supplier!

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