Sie sind auf Seite 1von 21

EIN 3351 ENGINEERING ECONOMIC ANALYSIS & COST ENGINEERING

Class 1B The Enterprise And Business Concepts

OVERVIEW

The Focus Designing for Profit Top Down Cost Targets Designing for Manufacture Financing the Enterprise

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-2

COURSE FOCUS

Near Total Overview of Our Class

Chapter 11 Example

Cost Analysis and Estimates Economic Evaluation Profit!

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-3

FREE ENTERPRISE

Producers

Make What They Want (Or Not) Charge What They Want Compete How They Want Buy What They Want (Or Not) Buy From Whom They Want

Customers

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-4

BUSINESS
Motivated By Profit Players Include

Owners Employees Customers


Cannot Succeed By Maintaining the Status Quo

Texas Instruments nearly disappeared because it depended on its cash cow in the 70s and 80s

The Calculator Very short sighted

They didnt see the need to expand

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-5

LAUNCHING A PRODUCT

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-6

MARKETING
Identifies

a Demand for a Product Creates a Demand for a New Product New Technologies Emerge and Grow
Innovation Growth Standardization Maturity

Need

Differing Marketing Approaches


Ch 11-7

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

DESIGN FOR PROFIT


For

the most part, engineers like to build up an estimate


What will it cost to build it? Not realistic sell it for?)

Top Down Estimate Starts with a Market Price (What can I Ends with Target Costs Ensures: Product Meets Market Price Production Can Meet Cost Targets Profit Determines Feasibility (Proceed or

Go/No Go)

Kill,

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-8

3rd

Party

Market PriceLearning (Cost, Profit & Services) Illustration = $2050 Services/Profit = $1537.50 Market Selling Price (Cost, Profit) = $512.50

EXAMPLE
Includes: Materials Costs Labor Costs Production Costs Design Costs Sales/Advertising Costs Facilities Costs Equipment Costs Packaging Costs Shipping Costs Warranty Costs Customer Service Costs Profit Overhead Costs G&A Costs Etc.

Our Company

Profit to us = $212.50

Cost of Design/ Manufacturing = $300

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-9

EXAMPLE
This is an excellent example of most of the aspects of this course, and of Industrial Engineering in general

Industrial engineers are often the bridge between operational engineering and the business functions

Many Industrial Engineers become CFOs

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-10

DESIGN FOR MANUFACTURE


Smart Designs Reduce Cost Lots of Guidelines, Checklists, etc. Develop and Compare Design Alternatives

Satisfies Design and Cost Requirements

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-11

ALTERNATIVE DESIGN COMPARISON


Die casting aluminum alloy and machining 64 125 in. 0.002 in. Difficult to fixture, little cost saving with lot sizes Good for small lot sizes Investment casting of titanium alloy 25 64 in 0.005 in. Expensive pattern tooling Good accuracy, big cost decrease for lot size, less machining 3,250,000 cycles Harder in impact
Ch 11-12

Finish Tolerance Limitations Advantages

Reliability Hardness

1,500,000 cycles Soft

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

EXAMPLE OF ALTERNATIVE COSTS


Lot qty Machining parts from aluminum Die casting aluminum parts Die casting single aluminum part Single part titanium casting, bigger tolerances, no machining

10

$212.62

$463.79

Impractical
$57.21
45.93
Cheaper! Better!

100
500

93.17
91.32

59.63
57.42

$173.73
54.66
Ch 11-13

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

MAKE-OR-BUY
Find

Least Cost Source Suppliers May Have Lower Cost


Better Technology More Experience Better Fit for the Job Infrastructure

Compare

on Same Basis Lowest Price Is Not Always Lowest Cost


What does this mean to you?
Ch 11-14
2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

COST TO BUY

In Addition to Quoted Price


Transportation Costs Purchasing and Order Management Cost Receiving Costs Incoming Inspection Cost

Even if youre smart enough to ensure they are included

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-15

INTANGIBLES WITH BUYING


Schedule Control Quality Visibility into Status Surveillance requirements to protect your interests

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-16

CONSIDERATIONS FOR MAKE

Capability Does the Company Have:

The Technology The Skills The Capacity Shop Load (Plant Utilization) Affects Cost Determination

Capacity

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-17

EXAMPLE FINANCIAL CHART

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-18

FUNDING THE ENTERPRISE


Personal

Resources Existing Company Resources Private Investors Public Funding


Stocks Bonds Debt (Loans) Alliances

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-19

SUMMARY

How to Design for Cost and Profit


Cost Analysis Proceed or Not

How to Fund the Enterprise

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-20

VIDEO

What is a Price

2004 Pearson Education, Inc. Pearson Prentice Hall, Pearson Education, Upper Saddle River, NJ 07458 Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management

Ch 11-21

Das könnte Ihnen auch gefallen