This is Part 2 of a five-part series on building a should-cost engineering organization. In Part 1, I discussed how to launch with a clear vision and earn the first win. This article covers what comes next — scaling from a single category into a function the organization relies on.
In today's competitive manufacturing environment, organizations are under constant pressure to reduce product costs while maintaining quality, reliability, performance, and customer satisfaction. Engineering departments play a critical role in achieving these objectives, but their contributions to cost reduction are sometimes limited by an understandable tendency to prioritize proven designs over alternative solutions. When a design has successfully passed validation, demonstrated reliability, and satisfied customer requirements, there is often little incentive to revisit it. After all, why change something that already works?
This is Part 1 of a five-part series on building a should-cost engineering organization. The series draws on practical experience scaling cost engineering capabilities within a large global procurement organization and is written for professionals who are building, growing, or advocating for cost engineering within their own companies.
In the realm of Cost and Value Stream Engineering (CVSE), collaboration with suppliers is pivotal to achieving cost efficiencies and operational excellence. However, ensuring alignment and mutual commitment is often a challenge. Enter the Upfront Agreement, a strategic tool that fosters transparency, sets expectations, and creates a win-win foundation for supplier workshops and collaborations.
An accountant, a financial analyst, and a cost estimator walk into a bar. They sit down on the stools at the counter.
