Cost Down Engine is a structured approach to managing the project costs to a target throughout different phases of product life-cycle. This also closely relate to initiatives like for example Design to Cost (C.4.4) and the Cost of Poor Quality (D.4.10).
- Objectives/Key learning points
- Understand how to phase in cost target thinking early into the project
- Understand the concept of cost benchmarking
- Understand the role of a value engineer in this process
- Understand how to continually improve the assumptions that lead to better development of cost targets
- Understand how to link cost performance to suppliers’ capabilities and how suppliers’ choice will influence the total cost
- Teaching methodology
- Facilitated discussion with the client as to what drives the desire to reduce cost and how this can be achieved.
- Implementation methodology
- Design initiatives to reduce cost and run them as projects by applying all project management infrastructure