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1. INTRODUCTION
- Target Costing Introduction and Definition
- Comparison with Traditional Product Cost Management
- Target Costing & Design to Cost
2. PRODUCT ECONOMICS
- Economics of Product Development
- Relationship of Price, Product Costs, Development
Costs & Volume
- Elements of Costs and Life Cycle Costs (LCC)
- Nonrecurring Development Costs and Recurring Production Costs
- Tradeoff's Between Recurring & Nonrecurring Costs
- Obtaining & Using Manufacturing and Supplier Cost Data
3. STRATEGY AND PRICING
- Product Strategy as a Basis for a Pricing Strategy
- Assessing Customer Affordability & Competitive Implications
- Obtaining Customer Feedback on Affordability & Value
- Establishing Market-Driven Prices or Price-to-Win
- Pricing Strategies: Cost-Based Pricing,
Competitive Pricing, Value-Based Pricing, and Experience Curve-Based
Pricing
- Offensive and Defensive Pricing Strategies
- Demand Elasticity and Considerations in Pricing
- Pricing Exercise
- Maximizing Value
- Value Innovation Concept
- Value Innovation Case Study
- Determining Which Features Customers Value
- Voice of the Customer Investigation
- Conjoint Analysis
- Conjoint Analysis Example
- Conjoint Analysis Exercise
- Maximize the Customer Value Proposition with
Quality Function Deployment (QFD)
- Consider Customer Needs vs. a Target Price
- Setting the Target Price
4. ESTABLISHING A TARGET COST
- Determining a Target Cost From the Target Price
- Determining Supply Chain Margins, Distribution Costs, Warranty
Costs, Corporate Allocations & Profit
- Target Cost Worksheet & Example
- Using Quality Function Deployment (QFD) to Balance Requirements and
Cost
- Identify Cost Drivers with QFD
- Using QFD to Balance Specification Values and Cost
- Customer Function Diagram to Abstract
Requirements and Assess Completeness
- Using Quality Function Deployment to Balance Requirements and Target
Cost
- Allocating & Tracking Target Costs
- Developing the Overall Business Case for a New Product
- Exercise - New Product Business Case
5. ESTIMATING & TRACKING COSTS
- Using Product Cost Models and Cost Tables to Achieve Target Costs
- Basic Product Cost Models - BOM Cost Roll-ups and Spreadsheets
- Creating and Refining a Predictive Cost Model
- Commercial Cost Model Tools
- Validating Cost Projections
- Cost Tracking and Performance Monitoring
- Target Cost Tracking Worksheet
6. TARGET
COSTING DURING CONCEPT DEVELOPMENT
- Use of Function Analysis to Explore Concept Requirements and Reduce
Costs
- Value Engineering & the Function Analysis/Value Analysis
Methodology
- Function Analysis Exercise
- Function Cost Matrix & Value Analysis Matrix
- Function Analysis System Technique (FAST)
- Function Analysis Exercise II
- Importance of Exploring Concept Alternatives
- Brainstorming and Other Creativity Techniques
- TRIZ and Theory of Inventive Problem Solving
- Trimming and Simplification
- Concept Evaluation and Concept Selection Matrix
- Simplification and the Impact of Architecture on DTC
7. TARGET COSTING DURING ASSEMBLY DESIGN
- Function Analysis with Assembly Design
- The Power of Considering Assembly Design
Alternatives
- Design for Assembly (DFA)
- DFA Principles & Guidelines
- The Key DFA Principle - Simplification
- DFA Exercise
- Avoiding Non-Recurring Costs with Standardization
- Mistake-Proofing Assembly
- Assembly Process and DFA Principles
- Handling and Orientation
- Location a ndInsertion
- Joining and Fastening
- Adjustment & Finishing
- Design for Test - Developing an Economic Test Strategy
8. TARGET
COSTING DURING PART DESIGN/SELECTION
- Function Analysis with Part Design
- Evaluating Material and Process Alternatives
- Trade-offs of Nonrecurring and Recurring Costs with Tooling Near Net
Shape Parts
- Standardization and Simplification
- Design for Manufacturability (DFM)
- Evaluating Material and Process Alternatives
- Production Rate & Cost Trade-off's: Materials, Manufacturing
& Tooling
- DFM Principles & Guidelines - Machining, Sheetmetal, Injection
Molding & PWB's
- DFM Exercise
- Reducing Costs with Early Supplier Involvement & Effective Supplier Partnership
- Purchasing Actions to Reduce Cost
- Minimizing Supply Chain and Logistics Costs
9. TARGET
COSTING DURING PROCESS DESIGN
- Principles of Process Design for Low Cost
- The Role of Value Engineering in Process Design
& Improvement
- Cost Reduction through Automation and
Integration
- Re-engineering the Development and Production Processes
- Eliminating Non-Value-Added Activities
- Minimizing Cost Through Maximizing Process Capability
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- Centering the Mean and Establishing Realistic Tolerances
- A Minimum Cost Strategy Cost Inspection & Test
- Optimizing Tolerances for Low Cost
10. ACHIEVING TARGET COSTS
- Challenging Your Assumptions
- Target
Cost Exercise
- Achieving Target Cost - Summary by Development Phase
11. PROCESS, MANAGEMENT & ORGANIZATION
- Establishing a Target Costing Program
- The Target Costing and Design-to-Cost Process
- Avoiding Local Optimization and Global Suboptimization -
Organizational Issues
- Use of Product Development Teams to Achieve
Cost Targets
- Roles and Responsibilities
- Establishing a Target Costing Program
- Essential Metrics to Track Target Cost Achievement
12. IMPLEMENTATION & SUMMARY
- Questions to Consider During the Five Stages of Development
- The 10 Steps to Target Costing/Design-to-Cost
- Deploying a Target Cost Program to Your Business/Project
- Overcoming Impediments and Applying Lessons
Learned
- Developing an Action Plan to Close the Gap
- Sources of Further Information
- Questions and Answers
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