Principal, Costing Engineer

Position Summary

The Cost Management Lead is responsible for establishing, governing, and optimizing the end-to-end cost structure of new offers/products during the New offer lifecycle.

The role ensures that new offers are launched within target cost, achieve required profitability and meet business case commitments through close collaboration with Engineering, Procurement, Manufacturing, Supply Chain and Product Management teams.

This position serves as the single point of ownership for cost competitiveness, target costing, value engineering, and financial viability of new offers from concept to industrialization.

Purpose of the Role

To ensure all new offers are developed, industrialized, and launched with competitive cost structures that meet market expectations, achieve target margins, and support sustainable business growth through disciplined cost management and value engineering

Key Responsibilities

Target Cost Management


* Define target cost based on market price, margin expectations, and business strategy.


* Establish cost objectives at product, subsystem, and component levels.


* Track cost performance throughout the development cycle.


* Drive cost accountability across cross-functional teams

New Offer Cost Development


* Develop detailed product cost models during concept, design, and industrialization phases- CSC derivation and evolution


* Analyse BOM costs, manufacturing costs, logistics costs, and overhead allocations.


* Create should-cost models for critical components and assemblies.


* Support pricing and business case development.

Value Engineering & Cost Optimization


* Identify and execute cost reduction opportunities.


* Facilitate Design-to-Cost (DTC) and work closely with Scrum master


* Challenge design decisions impacting product costs.


* Benchmark costs against competitors and market standards.


* Lead cost optimization initiatives before product launch.

Supply Chain & Procurement Collaboration


* Partner with Procurement to establish sourcing strategies aligned with target costs.


* Evaluate supplier quotations and negotiate cost improvement opportunities.


* Participate in supplier selection and localization initiatives.Support make-versus-buy decisions through financial analysis

Manufacturing Cost Assessment


* Evaluate manufacturing processes and conversion costs ( MBC, DVC)


* Support industrialization teams in identifying productivity improvements.


* Analyze labor content, machine utilization, tooling, and capex requirements.


* Drive manufacturing cost competitiveness across plants.

Governance & Reporting


* Establish cost management dashboard and KPI reporting.


* DCMP utility and analysis with escalation

Key Deliverables


* Target Cost Breakdown Structure


* Product Cost Model


* Cost Risk & Opportunity Register


* Design-to-Cost Action Plans


* Supplier Cost Benchmark Anal...