Target Costing and Value Engineering

Business & Finance, Industries & Professions, Quality Control
Cover of the book Target Costing and Value Engineering by Robin Cooper, Taylor and Francis
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Robin Cooper ISBN: 9781351411769
Publisher: Taylor and Francis Publication: October 19, 2017
Imprint: Routledge Language: English
Author: Robin Cooper
ISBN: 9781351411769
Publisher: Taylor and Francis
Publication: October 19, 2017
Imprint: Routledge
Language: English

What would happen if everyone in your company followed a disciplined approach to cost reduction? Go ahead -- imagine it. What would it look like? How can it be done?

The answer -- smart cost management.

Effective cost management must start at the design stage. As much as 90-95% of a product's costs are added in the design process. That is why effective cost management programs focus on design and manufacturing. The primary cost management method to control cost during design is a combination of target costing and value engineering.

Target Costing Objectives:

  1. Identify the cost at which your product must be manufactured at if it is to earn its profit margin at its expected target selling price.
  2. Break the target cost down to its component level and have your suppliers find ways to deliver the components they sell you at the set target prices while still making adequate returns.

Value Engineering:

The connection to function: An organized effort and team based approach to analyze the functions of goods and services that the design stage, and find ways to achieve those functions in a manner that allows the firm to meet its target costs.

The result: Added value for your company (development costs on-line with added value for your company; development costs on-line with selling prices) and added value for your customer (higher quality products that meet, possibly even exceed, customer expectations.)

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

What would happen if everyone in your company followed a disciplined approach to cost reduction? Go ahead -- imagine it. What would it look like? How can it be done?

The answer -- smart cost management.

Effective cost management must start at the design stage. As much as 90-95% of a product's costs are added in the design process. That is why effective cost management programs focus on design and manufacturing. The primary cost management method to control cost during design is a combination of target costing and value engineering.

Target Costing Objectives:

  1. Identify the cost at which your product must be manufactured at if it is to earn its profit margin at its expected target selling price.
  2. Break the target cost down to its component level and have your suppliers find ways to deliver the components they sell you at the set target prices while still making adequate returns.

Value Engineering:

The connection to function: An organized effort and team based approach to analyze the functions of goods and services that the design stage, and find ways to achieve those functions in a manner that allows the firm to meet its target costs.

The result: Added value for your company (development costs on-line with added value for your company; development costs on-line with selling prices) and added value for your customer (higher quality products that meet, possibly even exceed, customer expectations.)

More books from Taylor and Francis

Cover of the book Sporting Capital by Robin Cooper
Cover of the book National Curriculum: National Disaster? by Robin Cooper
Cover of the book Muslim Diaspora in the West by Robin Cooper
Cover of the book Transforming Addiction by Robin Cooper
Cover of the book Rational Choice and Situational Crime Prevention by Robin Cooper
Cover of the book Affective Self-Esteem by Robin Cooper
Cover of the book Critical Animal Geographies by Robin Cooper
Cover of the book An Orthodox Festival Book in the Habsburg Empire by Robin Cooper
Cover of the book Urban Poverty in the Wake of Environmental Disaster by Robin Cooper
Cover of the book Rethinking Climate Change Research by Robin Cooper
Cover of the book Women in Foreign Policy by Robin Cooper
Cover of the book Straight Talk About Gays in the Workplace by Robin Cooper
Cover of the book Politics and Society in Israel by Robin Cooper
Cover of the book Challenging America's Global Preeminence by Robin Cooper
Cover of the book Caring for Older People by Robin Cooper
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy