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The Changing Role of the Cost Engineer Peter Astley

The Changing Role of the Cost Engineer Peter Astley. Three Questions. Who are we? Where have we come from? Where are we going? . Engineering. Applied to both Manufacturing and Projects. Develop. Design. Procure. Construct . Test. Maintain. Dispose.

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The Changing Role of the Cost Engineer Peter Astley

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  1. The Changing Role of the Cost EngineerPeter Astley

  2. Three Questions • Who are we? • Where have we come from? • Where are we going?

  3. Engineering Applied to both Manufacturing and Projects Develop Design Procure Construct Test Maintain Dispose Continuous Improvement

  4. The Professional Engineer Opportunity Analysis Application of Technology Systems & Processes Continuous Improvement Ethics

  5. Cost As An Independent Variable Quality Performance Schedule Cost

  6. Comparison – Manufacturing & Projects • Numbers - Manufacturing, several or many • projects, one or few • Processes - Industry dependent ~ Oil & gas, piping, vessels ~ Aerospace, machining, forming • Techniques - Planning, part planning or critical path • Risk management – nature of risk • Estimating - process dependent • 6s/kaizan/lean manufacturing or continuous performance improvement/value engineering • Through life costing – capital and operating cost

  7. UK Industrial History 1700 1800 1900 2000 2100 Textiles Iron & Steel Coal Roads Canals Infrastructure ? Shipbuilding Armaments Railways Pharmachem Nuclear Aerospace Oil & Gas Computing and Communications

  8. The Birth of the Cost Engineer 1700 1800 1900 2000 2100 Entrepreneurs Quantity Surveyors Accountants ? Cost Engrs

  9. The Role of the Cost Engineer • Accountant Budget, expended, post mortem, corporate strategy • QS Value of work, expended, contract management • Cost Engineer Estimate, risk, budget, changes, value of work, expended, forecast, analysis, early warning and advice • Project Mgr Organisation, motivation, corrective action

  10. The Challenge Globalisation • Poor judgment, project overspend, loss of manufacturing base • Software processes replacing analysis, low investment in training • Lack of engineering foundation Judgement Application Knowledge

  11. Better Performance • Improve front-end loading & planning • Improve risk management • Less reporting, more analysis • Collaborative contracts/supply chain • Professional, high calibre cost engineers

  12. Where Should We Be Going? • A united profession • Cost engineering at senior management level • Chartered level qualifications • Increased influence in decision making • Long term vision

  13. Motivation for Qualifications • Higher pay • Increased influence • Serving the profession

  14. Summary • Who are we? • Engineering knowledge with cost application and judgement • Where have we come from? • Cost engineering developed from oil & gas and aeronautics • Where are we going? • Build on the work of A Cost E • The profession as influencers to government & industry

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