Deploy and apply a target cost design approach

You want to manage the development and design of a new product with a production cost target in order to secure your business case and profit margins, or to position yourself in relation to the competition. We can guide you in the deployment and application of a target cost design (TCD) approach within a project organization and design teams.

Since product development often involves external partners or suppliers, we will present the specific features and variations of the CCO approach practiced in "external" mode, known as "Buy," as opposed to an "internal" application known as "Make." We consider the cost target as input data; establishing this target for a complex product is a problem in itself. This target is traditionally deduced from a market price from which the company's desired margin has been subtracted. Development costs are taken into account through amortization according to rules defined by the business case.

This sheet helps you answer the following questions:

• What organizational structure and management tools should be put in place within the project organization?

• What methods should be used to find low-cost solutions?

• What skills are required?