Target Costing and Value Engineering

In this book you will learn about the practices of seven companies described via case studies, including insights, lessons for adopters, the competitive context that led to implementation, the design of the systems, and the process used. In today's highly competitive environment, your company must learn to develop low-cost, high-quality products that have the functionality customers demand. Target Costing and Value Engineering represents the missing piece in the puzzle of how lean enterprises can successfully compete. What would happen if everyone in your company followed a disciplined approach to cost reduction? What would it look like? How can it be done? With smart cost management, two powerful strategies-target costing and value engineering, will get you well on your way. You will find both strategies included in this comprehensive book, the first in a series which is guaranteed to increase your profits. Cost management must start at the design stage to be effective. As much as 90-95 percent of a product's costs are designed in and cannot be avoided without redesigning. That is why effective cost management programs focus on manufacturing and design. The primary cost management method to control cost during design is a combination of target costing and value engineering. These strategies will help accounting professionals ensure that the products launched by their company are successful, creating added value for the company as well as the customer.