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Companies all around the world have realized that internal cost reduction focus as well as real cooperation between the supply chain are key factors for market success. There is also an understanding that labor and pricing negotiations have a relatively small influence on total product cost as the design intelligence, oriented to cost, quality and manufacturing, sets 70% or more of the product price. The purpose of this paper is to present the Sprint Engine Cylinder Blocks Commonization Project which was implemented after 1 year of hard work.

Companies all around the world have realized that labor and pricing negotiations have a relatively small influence on total product cost. By the time when they hire someone to manufacture their products or negotiate prices, 70% or more of the product price has already been set previously: at the Engineering design stage. Comes from this fact the importance of observing the cost perspective since the very beginning of the development phase, throughout it, as well as in all product technical change process. This is a matter of conscience and survival for the modern companies, in particular, the automotive ones, as part of one of the most competitive and contested markets. But how do we ensure that such an assignment has been carried out? It is easier said than done.