ABOUT PRODUCTS SERVICES GALORATH FEDERAL RESOURCES CAREERS CONTACT SHOULD COST ESTIMATING IN THE SUPPLY CHAIN Case Studies Value Engineering identifies targets for potential cost reductions. Generally, the major operating expense of contractors in the Aerospace and Defense market is the procurement of materials, products and services. The Supply Chain organization is a logical choice to own and drive Value Engineering initiatives in the organization. The Challenge The Supply Chain management of a major Aerospace and Defense contractor was directed to implement Value Engineering for all the Supply Chain organizations across multiple business sectors in the company. The company staffed a corporate Value Engineering Center of Excellence. The contractor had the internal engineering and contract resources, but the client needed to develop the capability to generate defendable Should Cost estimates. The Solution The contractor’s engineering team chose Galorath Engineering Services to train internal resources to use SEER-H and SEER-MFG to generate estimates. The team chose to outsource should cost estimating to Galorath Engineering Services while developing internal estimating capabilities. The Results Outsourcing the estimating produced significant savings over a 3-year period of performance. Should Cost Performance Year 1 Year 2 Year 3 Client Total Cost (SW, Training & Services) $355,680 $390,602 $348,144 Total P.O. Value of Hardware, Estimated $44,785,898 $107,616,037 $226,264,637 Net Savings with (SW, Training & Service Cost) $2,725,901 $8,722,089 $7,967,283 Savings is based on a 50% success rate (half of the estimates saved at least 10% of the vendor’s proposed cost) Outsourcing was self-funding. The savings in the first quarter of year 1 paid for the expenses in that quarter. The cost model was the deliverable for each estimate. Outsourcing produced a library and source of real world estimates for the client’s current and new internal estimators. GO BACK RESOURCES CASE STUDIES FEDERAL OUR THINKING PRESS RESOURCES TRAINING CONTACT US RELATED RESOURCES Live Training: Effective Ways to Realistically Achieve Savings Zoom Webinar: Thursday, October 28 @ 10 am PT / 1 pm ET Video will be made available to registrants … READ MORE Why Function Points? Quantitative software measurement extends significant benefits to IT organizations. Relatively few successful, robust, and mature measurement frameworks have been implemented.Function … READ MORE The impact of COVID-19 on Your Cybersecurity Budget In response to the pandemic, plenty of organizations had to re-invent themselves or significantly change the way they do business. … READ MORE GALORATH INCORPORATED 222 N PACIFIC COAST HWY. MS 1700 EL SEGUNDO, CA 90245 PHONE: +1 (323) 676 7279 EMAIL: INFO@GALORATH.COM © COPYRIGHT GALORATH 1979-2021 GALORATH FEDERAL 1020 ISABELLA DRIVE STAFFORD, VA 22554 PHONE: +1 (301) 494 8442 EMAIL: INFO@GALORATH.COM ABOUTPRODUCTSSERVICESGALORATH FEDERALLIBRARY GALORATH INTERNATIONAL LTD. BASEPOINT BUSINESS CENTRE, ANDOVER, HAMPSHIRE SP10 3FG, UK PHONE: +44 (0) 207 788 9042 EMAIL: INTERNATIONAL@GALORATH.COM CAREERSCONTACTBUSINESS ALLIANCESPRIVACY POLICYTERMS AND CONDITIONS It’s hard to make predictions, especially about the future. At Galorath, we make understanding future outcomes possible. Join a solutions specialist on a Zoom call for a free review of your costing challenges. SCHEDULE A CALLL We use cookies and similar technologies to provide you with the best possible experience on our website (for personalization, analytics and performance). PersonalizeAcceptReject