ACE will be returning to Detroit in October

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October 2018 | Detroit

Day One
Tuesday October 24, 2017

Day Two
Wednesday October 25, 2017

Driving Collaborative & Accurate Costing through the Supply Chain

Chair’s Opening Remarks

Creating a Transparent Supply Chain

OEM Perspective: Driving Transparency & Targets through the Supply Chain to Promote an Efficient & Low-Cost Automotive Industry


  • Communicating the benefits to a supplier of opening up their books and sharing an honest breakdown of costs
  • Hearing how an OEM can shine a light not only on Tier 1 costs, but also a breakdown of costs through sub-tiers and how this data can be used to reduce costs
  • Evaluating the power that a purchaser has when a supplier offers a unique or difficult to source solution

The Better You Are at Costing… the Better You Are at Quoting


  • Cost estimating and quotation management
  • Enterprise product costing improves customer relationships and quote response times
  • Maximize the relationship between sales and purchasing
  • Centralize and standardize costing processes on a global basis

Speed Networking & Morning Refreshments

Audience Discussion: How to Present an Accurate Cost Breakdown & Develop Collaborative Relationships with Customers


  • Reviewing the appetite of suppliers to break down their costs: how deep are they prepared to go and what hesitations do they have?
  • Comparing formats for how data can be displayed and improving communication with customers to understand which specific values are needed in each quote
  • Determining what percentage of profit is deemed acceptable and how this is presented to a customer accurately and fairly

Costing Methods

Utilizing Should Cost Models as a Negotiation Tool for Purchasing


  • Exploring how data such as material and manufacturing costs can be ascertained from multiple sources to develop a holistic understanding of the market
  • How to identify the line between competitive and unrealistic targets across each critical system and component
  • Understanding what data your purchasing team needs to be able to confidently and effectively negotiate with suppliers

Networking Lunch

Can You Handle the Truth? Do Cost Engineers Really Want to Measure Costs Accurately?


  • Determining the objective of cost information: to know the truth or to justify your case?
  • Exploring what guidelines could be adopted by all tiers of the supply chain and what that cost model could look like
  • Can you measure product and process costs at a 21st Century manufacturer with a 100-year-old cost model?

Hearing How to Accurately Estimate Costs When Provided with Limited Design Details from the Customer


  • Understanding which assumptions can or cannot be made to fill in design gaps
  • Improving collaboration with OEMs to narrow down the design options and develop as precise a costing as possible at an early stage
  • Identifying the largest uncertainties in preliminary costing such as future commodity costs and hearing best practices to improve foresight over these areas

Afternoon Refreshments

Panel: Exploring How Buyers & Suppliers Use Preliminary Estimates to Negotiate & Identify Reasonable Cost Reduction Plans

  • Amit Nayar Global Director Cost Engineering in Purchasing, Lear Corporation
  • Chris Domanski Purchasing Manager, Nexteer Automotive
  • Timothy Welbaum Senior Cost Engineer - Manufacturing, Hella
  • Marc Pearlman Director of Cost Estimating & Administration, Unique Fabricating


  • Developing a shared vision across the industry for what is a fair profit margin at each tier of the supply chain
  • Hearing how buyers use target costs and their breakdowns to identify inefficiencies in a quote and work with suppliers to develop a win-win for cost reduction
  • Outlining common reasons why disagreement may occur between buyers and suppliers on what further cost reductions are reasonable and how these can be resolved

Cost Control & Optimization

Learning How OEMs & Their Supply Chain Can Work Collaboratively to Balance Costs & Design Quality

  • Donald Bryant Global Commodity Manager, Stanadyne
  • Ed Pretzel President / Teacher , Collaborative Supply Chains / Wayne State University
  • Tim Britton Vice President, Clearfield Metal Technologies


  • Hearing how transparency and collaboration can have more of an impact in the early design stage compared to the later stages of a project
  • Exploring the speed at which suppliers can estimate the cost savings associated with alternative design changes to streamline the decision making for a buyer
  • Understanding how cost engineers can improve internal collaboration with designers to ensure the right balance is achieved between cost and quality

Chair’s Closing Remarks

End of Day One