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CostOptimizationWhoweare:WerepresentNorthAmericaCostOptimizationDepartment.GaryMarvicsin.MBA–PowertrainSupervisorwithManufacturingEngineeringexperience.SharonLi-Calso.MBA–SupervisorwithInteriorTrimexperience

N.A.CostOptimization CostOptimization(CO)ispartoftheProductDevelopment/ManufacturingFinanceOffice.COConsistsof1LL4Managerandapproximately25LL6Supervisorsand140CostAnalysts.N.A.CostOptsOrganizationSevenCommoditySections:

Chassis/Brakes, Electrical/Electronics, Safety/Glass/Sealing, Engine Transmission Stamping/HVAC/InteriorTrim ExteriorTrim/InstrumentPanel/ConsolesThesesectionssupportpiececostandtoolingestimaterequestssubmittedbybothNAcarandNAtruckPMTs. ThelasttwosectionsalsoareourNorthAmericanTruckVehiclecenterandNorthAmericanCarVehicleCenter.Thesetwocenters’supervisorsareresponsibleformanagingallN.A.vehicleprogramforCostOpt.CostOptsOrganization(cont.)PrototypeToolingSection:provideestimatesforprototypetoolingandpiececostforallnewprograms.ProcessAnalysisandControl:Thisgroupisresponsibleforupdating,maintaining,andprovidingtrainingonuniqueCostOpt.Systemsandprocesses.HowourestimatesareusedProvideEngineerwithestimatedvalueofalternativedesignsProvideBuyerwithunderstandingofprocessusedtomakepartsProvideFinanceAnalystwithprojectedcostforfutureprograms(targetsetting),wheredesigns,quotesandorothercostinfoarenotavailable.OurEstimatesare:Basedonasetofassumptions–(betterdetailedassumptions=betterestimate)ElectronicallycalculatedbyComputerAidedPartEstimatingsystem(orQwest,QuickWebEstimatingSystem)Detailedinprocess,material,andlaborSupportedbyGRIMMGlobalRateInformationforMachinesandMaterials(database)AMeasureofManufacturingValueComponentsofanEstimateMaterialLaborDirectIndirectMachineRepair,andOtherMachineBurden(Overhead)Depreciation/Installation/InterestFloorspaceUtilitiesMarkUpsSalesandGeneralAdministrationEngineeringPurchasingFrontofficeScrap(enditem)ProfitExampleofanestimateProcesseswe’’reheretolearnaboutCastingsElectronicsForgingsSmallAssemblyPowderedMetalWhatweareheretodoLearnwhatcostinformationisavailablefromChineseSuppliersEncouragecommonformatforquoting,usingthisinformationLearnabouttheprocessdifferencesbetweentheChineseapproachtoCasting,Forging,Electronics,andSmallAssemblyprocessesEstablishongoingpipelineofinformationexchan

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