Dawn "The supplier shall have a process for identification of cost elements or price, as appropriate, in developing quotations. NOTE Cost data are not subject to third party audit. Cost data refer to values, while cost elements refer to items such as labour, overheads, material. Can anyone tell me how to define a process for determining cost elements?"


Fully vaccinated are you?
I would think this is simply that you have to be ready to explain how you develop quotes. As far as cost elements, you cite several. Also notice the As Appropriate. It sounds to me like they want a company to ensure accurate quotes. To do this a company has to have a realistic quote methodology.

I do my quotes by figuring travel, implementation length and requirements of the prospective client, a guesstimate of company 'sincerity' (will they do 'their part'). Typically in manufacturing there are some pretty solid aspects to consider.

I would hesitate to read too much into this. Have you reviewed your quote process?

suzanne marley

Hello Dawn,
This requirement seems to come direct from VDA 6.1 which states that quotations for technical and commercial costs must be shown separately.
"All decisive cost elements must be determined and taken into consideration for a quotation. The costs are compiled by the responsible divisions and are incorporated into the overall calculation.
The individual cost elements contain, for example:
- Development costs
- Material costs
- Investments (including hardware/software)
- Quality measures costs
- Transportation costs
- Packaging costs
- Value-added portions
- Overhead"

I hope this is of use to you.

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