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Delivering cost-adequate products with design-to-cost

For manufacturing companies, the most important consideration after product innovation and quality is how costs will affect their ability to compete in the global marketplace. Developing detailed cost knowledge and maximum transparency in the design phase is indispensable for achieving excellent product cost management. 

Very often, projects go beyond the scope of a product development in terms of cost. The planned target costs, are exceeded and the product is not competitive on the market or the planned return cannot be realized. Since costs are designed into a product, especially by early concept decisions, the implementation of cost-cutting measures at a later time is only possible with significantly increased effort. Therefore it makes sense to use the design-to-cost approach to plan and control costs, right at the beginning of the product development phase.

Design-to-Cost

For manufacturing companies, the most important consideration after product innovation and quality is how costs will affect their ability to compete in the global marketplace. Developing detailed cost knowledge and maximum transparency in the design phase is indispensable for achieving excellent product cost management. 

Very often, projects go beyond the scope of a product development in terms of cost. The planned target costs, are exceeded and the product is not competitive on the market or the planned return cannot be realized. Since costs are designed into a product, especially by early concept decisions, the implementation of cost-cutting measures at a later time is only possible with significantly increased effort. Therefore it makes sense to use the design-to-cost approach to plan and control costs, right at the beginning of the product development phase.

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