Virtually no other phase in the product lifecycle offers as much cost optimization potential as development and design engineering: around 80 percent of the final product costs are defined here. Development-stage-based costing, also known as design costing, enables businesses to identify cost drivers during this phase while taking cost targets into account. The most technically and economically convincing concept is examined to determine its manufacturability and marketability.
Businesses that develop cost-optimized and therefore competitive products understand early on the cost level that needs to be reached to ensure a product or project is profitable. This helps them create products that remain successful in the market in the long term.
Design costing contributes to the profitability of a company, since
- product profitability can be estimated because developers work toward target costs early on in the product lifecycle,
- standardized data and cost methods reduce the use of resources,
- “time to market” decreases because costs are optimized quickly and additional development loops due to missing cost targets are avoided.
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