Manufactured engineering components

This cost modeling was conducted on a range of engineering items including complex castings and forgings. This required a full Bill of Materials to be costed, including the raw material cost drivers, use of energy in the melting process, labour costs, machining, quality testing, shipping, overheads and profit. The product cost was divorced from the tooling costs, including dies and moulds.

The application of Value Engineering and designing out unnecessary machining costs and probing the supply chain costs contributed to a large cost savings. Of course, in this situation there is the additional consideration of patterns for the castings and dies for the forgings. This was treated as capital investment.