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Author Topic:   Review-supplemental
Forum Contributor

Posts: 245
From:St. Marys, PA
Registered: Sep 98

posted 24 March 2000 02:49 PM     Click Here to See the Profile for Dawn   Click Here to Email Dawn     Edit/Delete Message   Reply w/Quote "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?"

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Marc Smith
Cheech Wizard

Posts: 4119
From:West Chester, OH, USA

posted 27 March 2000 07:51 PM     Click Here to See the Profile for Marc Smith   Click Here to Email Marc Smith     Edit/Delete Message   Reply w/Quote
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?

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suzanne marley
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Posts: 2
Registered: Mar 2000

posted 30 March 2000 08:51 AM     Click Here to See the Profile for suzanne marley     Edit/Delete Message   Reply w/Quote
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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