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Design-to-Cost

For manufacturing companies, the most important consideration after product innovation and quality is how costs will affect their ability to compete in the global marketplace. Developing detailed cost knowledge and maximum transparency in the design phase is indispensable for achieving excellent product cost management. 

Very often, projects go beyond the scope of a product development in terms of cost. The planned target costs, are exceeded and the product is not competitive on the market or the planned return cannot be realized. Since costs are designed into a product, especially by early concept decisions, the implementation of cost-cutting measures at a later time is only possible with significantly increased effort. Therefore it makes sense to use the design-to-cost approach to plan and control costs, right at the beginning of the product development phase.

Design-to-cost enables you to make smarter decisions for product design that will meet your cost targets

Design-to-cost with Teamcenter product costing

With the design-to-cost capability in Teamcenter® product costing you can represent the entire cost structure of your products and cost engineers can see the impact of concept changes on the cost early in the lifecycle. You can identify cost drivers and suggest alternative design solutions. Through state of the art integration technology you can easily reuse as well costing relevant data from SAP ERP systems (e.g. material prices, work centers, BOM’s and routings) for your design-to-cost calculations. Teamcenter also provides you the opportunities for cost simulation, such as comparison of manufacturing technologies. You can reproduce different scenarios for manufacturing to receive the best design and manufacturing concept for your product.

Your benefits

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The design-to-cost capability in Teamcenter product costing helps you to save significantly costs without compromising functionality and quality. You can make smarter decisions for product design that will meet your cost targets.