Onsite Seminar

Cost & Price Strategies

Cost Estimation: Applications and Understanding

You Will Learn
  • How to ask the right questions, frame the parameters, and develop a cost checklist
  • How to develop a timeline and appreciate timing's impact on pricing
  • How to develop various cost estimates
  • How to apply your data when developing and reviewing reports
  • How inflation and escalation impacts cost and the risks in estimation
  • How computer applications can aid in developing your cost estimate
Course Outline
  1. Why utilize cost estimation, what are the risks for poorly designed costs, and how to use cost data for planning
  2. Fundamentals of estimating: Definitions of cost and price analysis, understanding the variations, how to begin the process, tools necessary to lay the foundation, and data collection and dissemination
  3. Know what you are assessing: Asking the right questions, framing the parameters, bottom-up or top down, identifying the criteria impacting cost/price, developing a cost checklist
  4. How to apply cost estimation
  5. Applying the estimator's core template: Developing a timeline, appreciating the impact of timing on pricing, project management, make-vs.-buy, and establishing elements of an estimate
  6. Developing your estimate: Knowing your materials cost, estimating manufacturing costs, evaluating engineering and overhead costs, profiling construction costs, estimating labor allowances, and knowing equipment and capital investment costs
  7. How to apply information when complete: Compiling data, and developing and reviewing reports
  8. How inflation and escalation impact the cost
  9. Risks in cost estimation for a firm
  10. Computer applications in estimating
Who Should Attend

Purchasing and supply managers, buyers, and other professionals seeking effective techniques to manage costs and improve profit margins.