Chapter 10


The use of strategies, organization, and tools of cost management can be best understood with actual examples from industrial practice, especially if the examples are not from the reader's field of knowledge. Therefore these examples were not too complex and are understandable for engineers. Besides those shown here, other examples are spread throughout the book, though often not as fully explained.

The procedures and the circumstances of the examples correspond to actual cases. The numbers and the boundary conditions have been simplified and modified because of the limited coverage, to prevent any direct connection to companies.

The following overview is meant to facilitate orientation (see Sect. 4.5.2).

  • 10.1 Example “Concrete mixer”
  • 10.1.1 Goal of the example
  • 10.1.2 Problem description
  • 10.1.3 Description of the competing products
  • 10.1.4 Steps in the cost reduction project
  • 10.1.5 Summary and conclusions of the example
  • 10.2 Example “Centrifuge base”
  • 10.2.1 Introduction
  • 10.2.2 Clarify the task
  • 10.2.3 Summary and conclusions of the example
  • 10.3 Example for the application and comparison of quick cost calculation procedures: “Bearing pedestal”
  • 10.3.1 Introduction
  • 10.3.2 Determination of costs in production planning and preliminary calculation
  • 10.3.3 Weight cost calculation for welded design; lot size = 1
  • 10.3.4 Cost calculation with Cost Growth Laws: Welded design, size ratio φL = 0.5 and 2

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