Design-to-Cost

After product innovation and quality, how prices will impact a company’s capacity to compete in a global market is the most crucial factor for manufacturers. To achieve effective product cost management, developing in-depth cost information and maximal transparency in the design process is essential.

Projects frequently cost more than they should for a product development. The product is not competitive on the market, the intended return cannot be attained, and the planned goal expenses are surpassed. Costs are built into a product from the start, especially through concept decisions, so later cost-cutting measures can only be put in place with a lot more work. Consequently, it makes sense to start planning and controlling expenses using the design-to-cost method as soon as the product development process begins.

You can depict the whole cost structure of your products using the design-to-cost functionality in Teamcenter® product costing, and cost engineers can observe the effects of concept modifications on the cost early in the lifecycle. You can pinpoint cost-related factors and make alternative design recommendations. You may quickly reuse cost-relevant data from SAP ERP systems, such as material pricing, work centres, BOMs, and routings, for your design-to-cost calculations by utilising cutting-edge integration technology. Additionally, Teamcenter gives you access to cost modelling tools like a comparison of production methods. To get the optimum design and production idea for your product, you may replicate several manufacturing situations.

With Teamcenter product costing’s design-to-cost feature, you may dramatically reduce expenses without sacrificing functionality or quality. You may choose more wisely when it comes to product design so that you can stick to your budget.