What is cost engineering - and why is it more important today than ever?

What is cost engineering?

Cost engineering, also known as cost management or cost engineering, is a structured approach to planning, controlling and monitoring costs throughout the entire product life cycle - from the product idea and development to series production and market launch. It combines engineering know-how with business management thinking.

Objectives of cost engineering

The main aim is to create cost transparency and identify cost potential at an early stage. This enables companies to design their products more economically without compromising quality or functionality.

Central objectives at a glance:

- Early cost forecasting and influencing

- Optimization of product design and materials

- Avoidance of unnecessary expenditure

- Creation of realistic price and margin targets

- Why is cost engineering so important today?

In times of increasing competition, global supply chains and rising raw material prices, proactive cost management is crucial to a company's success. Those who have costs under control at an early stage can calculate better, react more quickly to market changes and operate more profitably in the long term.

- Around 70-80% of later costs are fixed, especially during product development. This is where cost engineering comes in: Well-founded analyses, benchmarking and target costing make it possible to achieve targeted savings - without compromising on quality.

Benefits for companies

Cost engineering brings measurable benefits:

Cost reduction - avoidance of unnecessary expenditure and overengineering

Competitive advantage - better calculated prices and higher margins

Risk minimization - reliable planning through transparent calculation

Increased efficiency - optimized processes and use of resources

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Conclusion

What is cost engineering? It is far more than just cost control - it is a strategic tool for modern companies to harmonize innovation and profitability. Especially in dynamic markets, it creates the necessary transparency and efficiency to achieve sustainable success.

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