Cost Estimating

Cost estimating is a process built on the application of material cost information and process performance knowledge to provide an estimate of the cost of producing a product or the cost of a particular step in the production of a product. Factors that must be considered include: amortization of capital cost, labour cost, material cost, design & engineering cost, packing cost, shipping cost, etc. Once students have mastered the basic principles of cost estimation, they will carry out case studies where their goal is to reduce cost either on a process optimization basis or a global cost basis.