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.