What is it about?
The purpose of this paper is to present a method to quantify the costs of potential losses from production processes for new products to prioritize improvement projects based on the target cost and provide data and information for feasibility studies of continuous improvement projects.
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Why is it important?
The specificity of the manufacturing cost policy deployment for new products is to identify the percentage of cost of future production phases which does not add value from a customer perspective, dynamically throughout the product life cycle. The percentage of non-value added cost is based on loss of each manufacturing process and is determined scientifically based on data and facts.
Perspectives
Using the proposed method helps manufacturing companies in the acceptance of certain orders which at first glance are unprofitable. Moreover, the proposed method will help develop scenarios for continuous cost reduction after starting production through continuous improvement of productivity and quality required. The empirical results are based on the study during a year and a half in the automotive company, using action research methodology.
Dr. Alin Posteuca
Exegens Management Consultants
Read the Original
This page is a summary of: Beyond Target Costing: Manufacturing Cost Policy Deployment for New Products, Applied Mechanics and Materials, November 2015, Trans Tech Publications,
DOI: 10.4028/www.scientific.net/amm.809-810.1480.
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