Costing Engineer

Cost Engineer (Proprietary Components)

Department:

Role Objective

proprietary bought-out components

Key Responsibilities

1. Detailed Should-Cost Analysis

• Develop

  component-level should-cost models

  for:
• Hydraulic pumps, cylinders, valve blocks, hoses, steering units
• Engine assemblies & subcomponents
• Axles, transmission, torque converter
• Fabricated structures (loader arms, booms)
• Tyres, rims, brake systems
• Electrical harness, ECU, alternator, starter motor
• Cabin parts: seats, AC units, displays, switches
• Perform

  material costing

  using actual raw material index (steel grades, aluminum, rubber, copper, plastics, cast iron).
• Estimate

  processing costs

  for:
• High-pressure die casting
• Sand casting / SG iron casting
• Precision machining (cycle time, tool cost, tolerance stack-up)
• Injection moulding
• Hydraulic testing & assembly
• Forging and heat treatment
• Calculate

  tooling costs, amortization, and development cost contribution

  .

2. Product Teardown & Benchmarking

• Conduct

  physical teardown analysis

  of competitor parts (hydraulic cylinders, engine ancillary parts, transmission parts).
• Measure and document

  material thickness, machining operations, tolerances, surface treatments

  .
• Build

  costfeature benchmarking reports

  comparing:
• Vendor A vs Vendor B
• Global vs local suppliers
• Cost vs performance characteristics (pressure rating, flow rate, torque capacity).

3. Technical Supplier Evaluation

• Assess supplier

  manufacturing capability

  :
• CNC machining infrastructure
• Foundry capability (CE, chemical composition, yield)
• Hydraulic testing rigs
• Assembly line process controls
• In-house design competency
• Validate supplier

  cost breakup

  (RM + conversion + process + overhead + margin).
• Provide technical negotiation inputs to SCM during cost finalisation.

4. NPD (New Product Development) Cost Control

• Prepare

  cost predictions

  during:
• RFQ stage
• Proto build stage
• DV/PV test stage
• Cost impact analysis for:
• ECN/ECO
• Material grade change
• Design modifications (wall thickness, machining step reduction, tolerance relaxation).
• Evaluate

  Make vs Buy

  scenarios for new assemblies.

5. VA/VE & Localization

• Identify cost-saving opportunities through:

• Design simplification:

  reduce machining features, reduce weld length, optimize casting geometry

• Localization of imported proprietary parts

  (hydraulic valves, pumps, joystick, ECU, sensors, seats, tyres).
• Validate alternate suppliers through:
• APQP / PPAP document review
• Process flow & PFMEA analysis
• Part layout inspection & functional test comparison.

6. Engineering Documentation & Tools

• Create & maintain:
• Cost sheets
• Should-cost libraries
• Process-cost time studies
• RM price index database
• Use technical tools:
• SAP (MM/CO)
• SolidWorks/Creo/2D drawings reading
• Costing software (if available)
• Advanced Excel, Pivot, VLOOKUP, macros (optional)