Cost Estimation Engineer

Cost Estimation Engineer

Job Description – Cost Estimator

Position Title: Cost Estimator or Senior Cost Estimator

Department: Cost Estimation

Reporting To: Head of Cost Estimation

Position Summary

The Cost Estimator is responsible for developing accurate and reliable material cost estimates for products, proposals, and purchasing activities within the capital equipment business. The role supports Strategic Sourcing, Purchasing, Product Line Management, and Proposal teams by providing structured material cost analysis, cost models, and cost transparency to support competitive proposals, and sourcing decisions.

The Cost Estimator works closely with cross-functional stakeholders to analyze product cost structures, support cost-out initiatives, and continuously improve cost estimation methodologies using historical purchasing data, supplier quotations, market trends, and execution feedback.

This role is critical in supporting proposal competitiveness, sourcing strategy development, purchasing effectiveness, and material cost accuracy.

Key Responsibilities

Supplier Material Cost Estimation

• Develop material cost estimates for externally sourced components, fabricated items, equipment, and major assemblies used in proposals and projects.
• Analyze supplier quotations, historical purchasing data, market conditions, manufacturing methods, and sourcing strategies to develop reliable material cost estimates.
• Prepare structured cost breakdowns for externally sourced products and components.
• Support Strategic Sourcing in supplier evaluations, sourcing strategies, supplier negotiations, and cost reduction initiatives through cost analysis and should-cost support.
• Maintain cost estimation assumptions and supporting documentation for externally sourced items.
• Support proposal activities by providing accurate material cost estimates for purchased components and equipment.

Internal Manufacturing Cost Coordination

• Coordinate with internal manufacturing shops to obtain manufacturing cost estimates for internally produced components and assemblies.
• Compile and consolidate internal manufacturing estimates together with externally sourced material cost estimates to support proposal and project requirements.
• Ensure consistency and completeness of consolidated material cost estimates.
• Collaborate with internal manufacturing stakeholders to clarify scope, specifications, and estimation assumptions when required.

Proposal Material Cost Estimation Support

• Develop accurate and consistent material cost estimates for proposals and budgetary estimates.
• Coordinate with Product Line, Strategic Sourcing, Purchasing, and Proposal teams during proposal development.
• Review estimates versus actual purchasing cost and identify opportunities to improve estimation accuracy.
• Incorporate lessons learned and execution feedback related to supplier performance, purchasing outcomes, and market conditions into future material cost estimates.
• Support proposal reviews and provide material cost analysis during commercial and technical discussions.

Cross-Functional Cost-Out Initiatives

• Participate in cross-functional cost-out workshops with Product Line, Quality, Strategic Sourcing, and other stakeholders.
• Support preparation for cost-out workshops through development of material cost breakdowns and analysis of major cost drivers.
• Identify potential material cost reduction opportunities through benchmarking, supplier alternatives, sourcing strategy adjustments, and cost modeling.
• Support evaluation of feasibility and financial impact of identified material cost reduction opportunities.

Collaboration with Strategic Sourcing and Purchasing

• Collaborate closely with Strategic Sourcing to support sourcing initiatives, supplier evaluations, and supplier negotiations.
• Work with Purchasing teams to provide material cost insights.
• Share cost driver analysis and cost transparency information with supply chain stakeholders.
• Participate in cross-functional sourcing and purchasing discussions where material cost estimation support is required.
• Support alignment between supplier pricing, purchasing execution, and material cost estimation assumptions.

Cost Estimation Methods, Tools, and Repository Management

• Support continuous improvement of material cost estimation methodologies, templates, and tools.
• Develop and maintain a structured repository of supplier quotations, historical purchasing cost data, and project information.
• Maintain a structured record and repository of complete proposal material cost estimates, including sourcing strategies, supplier details, supplier quotations, and estimation references for each proposal. This information shall support Purchasing during contract execution when a proposal is converted into a contract.
• Ensure estimation assumptions, cost models, and supporting data are properly documented and organized.
• Improve utilization of historical purchasing data and sourcing information to support reliable and repeatable material cost estimates.
• Monitor commodity market trends relevant to purchased materials and components and support development of tools or methods to correlate commodity movements with material cost estimates where appropriate.
• Support knowledge sharing and standardization of estimation practices within the team.

Key Performance Indicators (KPIs)

• Quote cycle time.
• Cost breakdown accuracy
• Estimate throughput (productivity)
• Material cost accuracy forecast (ability to predict commodity & supplier prices)

Qualifications and Experience

• Bachelor’s degree in Engineering, Supply Chain, Manufacturing, Business, or related field.
• Experience in cost estimation, purchasing, sourcing, or manufacturing within heavy industrial, mining, minerals processing, cement, or capital equipment industries.
• Experience working with complex fabricated products, castings, machining, heavy equipment, or engineered systems preferred.
• Understanding of purchasing processes, supplier quotations, manufacturing methods, and cost drivers.
• Experience supporting proposals, sourcing activities, or capital projects preferred.

Technical Skills

• Strong analytical and problem-solving skills.
• Ability to develop structured cost models and cost breakdowns.
• Understanding of manufacturing processes and industrial cost structures.
• Strong Excel and data analysis skills.
• Ability to analyze supplier quotations and historical project data.
• Knowledge of ERP systems and purchasing systems preferred.
• Understanding of should-cost analysis and benchmarking preferred.

Competencies

• Strong cross-functional collaboration and communication skills.
• Attention to detail and structured analytical approach.
• Ability to work independently and manage multiple priorities.
• Commercial and business awareness.
• Continuous improvement mindset.
• Ability to support both strategic and operational purchasing activities.

Preferred Industry Background

Experience in mining, minerals processing, heavy industrial equipment, or similar capital equipment industries.

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