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Chris Domanski - Cost Engineering: A Practical Method for Sustainable Profit Generation in Manufacturing

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Chris Domanski Cost Engineering: A Practical Method for Sustainable Profit Generation in Manufacturing
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    Cost Engineering: A Practical Method for Sustainable Profit Generation in Manufacturing
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Cost Engineering: A Practical Method for Sustainable Profit Generation in Manufacturing: summary, description and annotation

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Cost Engineering: A Practical Method for Sustainable Profit Generation in Manufacturing Subject Guide: Engineering -- Industrial & Manufacturing In todays hyper-competitive, global marketplace, a manufacturing company needs a competitive edge if it is to survive and grow. That edge could be anything from superior manufacturing technology to innovative product design; from patent protection to solid, well-established customer relationships. One competitive edge available to all manufacturers, but realized by only a few, is the ability to accurately measure, control, and optimize costs throughout a products entire life cycle. The lack of a methodology to engineer cost optimization into every product makes attaining and maintaining profitability all that the more difficult. Cost Engineering provides a means for a manufacturer to achieve and sustain profitability by designing and manufacturing products to specific cost requirements. It incorporates a variety of proven methodologies including cost estimating, cost control, and cost optimization. Features: Describes the components and organization of an effective cost optimization process Provides detailed explanations of cost estimating techniques for many of the most common manufacturing processes Explains the selection and use of appropriate cost allocation methods Presents the fundamentals of cost-based negotiation Includes both proper and improper executions of cost engineering principles The details presented in this book are important to design engineers, manufacturing engineers, buyers, accountants, cost estimators, cost optimization specialists, and their managers and provides CEOs, COOs, general managers, product line managers, and plant managers with guidance on improving and sustaining profitability. .

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I was still dizzy from shock driving back to my hotel I was already halfway - photo 1

I was still dizzy from shock driving back to my hotel. I was already halfway there and now realized that I could not remember leaving Electronica or getting into my car or driving for that matter. I stopped at a red light and dialed my phone. The cars Bluetooth picked up the signal, and the phones ringing filled the whole car.

Hey, buddy! boomed Jim Millers voice when he finally picked up.

I just got fired, Jim, I said flatly.

Come again?

Your CEO, Bill Rasor, just fired me, I repeated with a bit of aggravation.

There was a moment of silence, then Jim let out a long sigh and said, Im sorry, Doug. I didnt know anything about it. They must have gone around me somehow. I did not respond and started to drive again when the light turned green.

Did anything happen? Jim continued after a short moment.

Nothing happened. I spent the whole weekend working on the damn recommendation and was ready to present it to Rasor when he called me into his office and just fired me.

Nothing happened before that? Did you piss anybody off?

Like who? I said.

I dont know. How about last week? he pressed me.

I didnt talk to Rasor at all before today. I just met with a bunch of people last week. They were all annoyed, especially your VP of Engineering, but no major arguments or anything.

Wait! Jim interrupted. You spoke with Tim Meadows?

Yes. Why?

He actually let you meet with him? In his office?

Was he not supposed to? I said, confused.

Never mind. I think I know what happened.

Thats great, Jim, but honestly I dont really care. Im flying home tomorrow.

Wait, give me some time to figure this out, he pleaded.

Why? Wait for what? Im done with this place. My senses were coming back to me, and I was now getting angry.

Doug, give me some time to figure this out. Ill call you back soon.

Im getting on that plane tomorrow, I said and hung up.

Tuesday, Day 9 of 28

I slept like a rock that night and felt refreshed when I woke up around 7:00 AM. The anger subsided, and I now felt as if a huge burden was taken off my shoulders. I was done with Electronica, and that felt good. My flight was at 11:00 AM, so I took my time packing my suitcase, then went downstairs for a relaxing breakfast. Omar and Stephanie greeted me with smiles as always.

Excited to go home? asked Stephanie.

Yes, thank you. I said and smiled back.

She poured me some coffee as I sat down. I was looking forward to going home, but I would miss Stephanie and her smiley face every day for breakfast. Even when I was married, my wife was never a smiley type, and it got worse after the miscarriage. She was into her work, and I was into mine. Toward the end of our marriage, we barely even saw each other. We spent most of the evenings reading books or watching TV separately. Maybe we were just too sad to rekindle our love. It got away from us after 20 years of marriage.

My phone rang suddenly and startled me out of my melancholy.

Good morning, Jim, I said with sarcastic enthusiasm as I picked up the phone.

Good. Im glad you picked up. I have some good news. He sounded winded, and I heard some noises in the background.

Me too. I slept great, I feel great, and my plane leaves in three hours.

Youre not going anywhere, Doug! Jim exclaimed.

Oh, yes I am, I contradicted him.

I spoke with the board last night. Tim Meadows pulled the strings to get you fired, but they are all back online now.

I didnt know that Meadows runs Electronica. I thought that Rasor was the CEO.

Meadows is buddies with one of the directors, Robert Sterling, who used to be the CEO of Electronica. They are both engineers and into fishing, so thats what happened.

You know what? I said remembering that it really did not matter to me anymore. I really dont care. You can deal with that yourself.

There was a pause on the phone for a moment. Stephanie dropped off an egg white omelet at my table, and I took a bite.

I would like to offer you a Vice President position at Electronica, Jim finally said.

I almost choked on my omelet. What? You want me to stay here permanently? I shouted and then laughed. Other restaurant guests and staff turned to look at me. I raised my hand in apology and whispered into the phone, Jim, there is no way in hell that Im going back to that place.

It will only be until you can implement all your recommendations and find a successor. Of course, wed have to win that Volta business first.

And what if our cost structure doesnt support the price and we dont win the business? I asked.

You would stay on until it is competitive, of course.

I was always a sucker for a challenge, and I was suddenly having a hard time resisting the temptation to take on turning Electronica around. As exciting as it was to go home again, I was getting goosebumps thinking about all the fun I would be having fixing Electronica and winning that Volta business.

Why cant you do this yourself? I finally asked him.

Im at the airport right now and will be landing there in three hours.

Oh, so what do you need me for?

Dont play dumb, Doug. Youre the best cost engineering guy in the country, maybe the world. I will be there to support you and get people lined up, but I need you to fix it.

I felt a bit ashamed for drawing some praise out of him, but it did feel good to hear it. Between Electronica and my divorce, I have not heard too many positive things said about me, and I needed a boost of self-confidence.

I want the title of Cost Engineering VP with Evan Kaminski, that Kumar guy, and those teams reporting to me, I demanded.

You got it, Doug, he replied quickly.

And I want a dedicated cross-functional quoting team and process under me.

Done.

Stephanie stopped by and started to refill my coffee.

Anything else? asked Jim.

I want a suite at my hotel, I said finally and smiled at Stephanie.

You got it, he replied. Ill see you at Electronica at one oclock.

I heard a click as he hung up. I looked up at Stephanie who was still standing there next to my table.

Extending your stay with us? she asked.

Yes, Im afraid youll be stuck with me for a while longer.

* * *

I have to admit, I was looking forward to the fireworks as I drove up to Electronicas office that afternoon. Jim was already there, and I assumed he was already clearing a way for me, but I wanted to see the look on everyones faces as I walked in exonerated.

Good morning, Doug, said Emily, as she welcomed me in the lobby. She seemed genuinely happy to see me, which took me aback.

Well, good morning, Emily.

I have a new badge for you and I want to take you to your new office.

I felt like I was just given the VIP access to an exclusive night club as she walked me up to a spacious office with a great view of the city. It literally made me feel like I was on top of the world.

Thank you, Emily. This is perfect.

You have a two oclock with Jim, Bill, and the executive team to present your recommendations. We dont have an admin assigned to you yet, so Ill be taking care of you in the meantime. Please let me know if you need anything.

I smiled happily with the thought of having Emily around. She took that as a confirmation and left my office.

* * *

Feeling good about myself did not last long. As soon as I walked into the executive conference room and faced all the same designer suits as my first meeting at Electronica, my stomach dropped and all my confidence left me. It did not even help that Rasor greeted me with a smile and sat me next to him at the big conference table or that my friend, Jim, the full six-feet and four inches of him, was there to support me. I could not get out of my mind the fact that most of these executives wanted me out of here just a day ago.

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