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White paper

Knowledge-Based Approach for Product Cost Optimization

Product cost optimization supports the realization of a win-win result for manufacturing companies and their suppliers, at an optimum cost for customers. For that reason, it is necessary to focus on cost optimization right from the beginning of the product lifecycle, i.e., at the conceptualization stage of a new product. Companies can create significant cost optimization through better understanding and evaluation of cost drivers across the entire value chain.

Product Cost Management is a software-enabled methodology that helps manufacturers understand the cost implications of their design and sourcing decisions. This transparency allows them to identify cost saving ideas such as changing materials, simplifying designs, combining parts / functions, or changing production locations. Product Cost Management is a detail-oriented process that systematically determines what a part should cost.

This white paper provides insights on how manufacturers from various industries analyze and optimize costs for manufactured goods during the design phase. It also shares the value of using a knowledge-based costs to negotiate and make process improvements with suppliers.

  • The Product Cost Management (PCM) Approach
  • Design for Optimal Cost
  • Source for Optimal Pricing
  • Drive Continuous Cost Improvement in the Supply Chain
  • Apply PCM Across the Product Lifecycle


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Knowledge-Based Approach for Product Cost Optimization

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