Two “new” Compass reviews

T4OG: Trans Four Owner’s Group

Mopars of the 2017 NYC Auto Show
You can advertise here. Contact us.

Cost Estimating: How much can we build that car for?

“A 1962 tear-down showed that the 1960 Chrysler Newport design was $85 per vehicle less than the 1960 Oldsmobile 88, but the Chrysler’s price was higher. This convinced management to give us $100 more for the 1963 Chrysler Newport reskin: we could add pleats to the seats, carpet the trunk floor, add wheel opening moldings, etc.”

Chrysler management never quite figured out just where cost estimation should fit in.

After World War II, when the Engineering guys ruled everything, they decided to have a cost department. Years later, as the bean counters came into control, it became evident Engineering should not have ownership of Cost Estimating and Planning — nor should Purchasing nor Manufacturing, for obvious reasons. Finance got control and, therefore, most of the bosses below were from Finance; they controlled the money anyway.

We were continually schooled at how cost estimating should be conducted at Chrysler.

Basic elements of an estimate are Material, Labor, and Burden [Overhead]. Additions like contingency amounts were recognized. This sounds simple but it was not! Programs almost never ended up costing what was estimated.

 



Who’s self-driving?
Virginia PDC
New Mopar distribution center

FCA’s high school design contest

More Mopar Car
and Truck News

We make no guarantees regarding validity or accuracy of information, predictions, or advice — see the terms of use and privacy policy. Copyright © 1994-2000, David Zatz; copyright © 2001-2017, Allpar LLC (except as noted, and press/publicity materials); all rights reserved.

Spread the word via or Facebook!
Dodge, Jeep, Chrysler, Ram, and Mopar are trademarks of Fiat Chrysler Automobiles.

Two “new” Compass reviews T4OG: Trans Four Owner’s Group Mopars of the 2017 NYC Auto Show