The APQC Blog

How Organizations Manage Product Costs

Anyone involved in designing and producing products knows that there are multiple priorities when releasing something new. You not only have to make sure your development project launches on time and on budget, but you also have to make sure that the manufacturing of the product is as cost efficient as possible. That’s why many organizations are adopting a design-to-cost approach for their product development efforts. 

As the infographic below shows, organizations implement this approach in different ways. They also involve various business units in managing product costs. These organizations often take steps to make sure they do not repeat mistakes in future development projects.

How organizations put a design-to-cost approach into practice.

To read more about how design-to-cost helps organizations in setting and managing product cost targets, read the white paper from APQC and Tata Consultancy Services: Effectively Setting Product and Component Cost Targets and Designing to Them.

Stay up to date with our upcoming supply chain management and product development research, webinars, and more by visiting our expertise page.

Follow me on Twitter: @BP_SupplyChain