There is no “one size fits all” Target Cost management solution.
Managing product cost in a Target Costing environment means pulling together a number of software point solutions or tools and integrating them into a heterogeneous solution.
Target Costing - A General Solution Architecture
A Product Life-cycle Management (PLM) software product usually provides the necessary framework and an expanding number of key functions to enable a Target Costing environment to be established.
Product development in this context is a product design process that considers all pertinent aspects of the required product solution – value and quality to the end user, optimum technical performance, ease of manufacture all at minimum cost to achieve those objectives.
With each industry, product type and according to the market demands the actual mix and deployment of tools and techniques will vary.
However the overall aim is to optimise the product design in the domains shown in the diagram below:-
The process includes the use of a suite of tools and techniques.
A few are listed here:-
Value Driven Design Ltd can assist your company to select and use the appropriate combination of tools and techniques for the Target Cost environment for your new product introduction (NPI) processes. We can assist with the design or redesign of the new product introduction process.
We can also assist with the selection and configuration of the PLM and Product Cost Estimating system to maximise the value impact of the selected tools in your company.
Contact us to discuss how we can help your company.