TYPICALLY 70% TO 85% OF PRODUCT COSTS ARE COMMITTED BASED ON DECISIONS MADE DURING THE PRODUCT DEVELOPMENT CYCLE. PRODUCT COST MANAGEMENT MUST BEGIN BY CONSIDERING CUSTOMER AFFORDABILITY OR COMPETITIVE PRICING REQUIREMENTS. COST TARGETS NEED TO BE ESTABLISHED AND COMMITTED TO BY PRODUCT DEVELOPMENT TEAM MEMBERS. PRODUCT COST MODELS NEED TO BE DEVELOPED THAT PROJECT COSTS EARLY IN THE DEVELOPMENT CYCLE. THE NATURE OF THESE COST MODELS WILL CHANGE OVER THE DEVELOPMENT CYCLE; HOWEVER, THE KEY IS TO USE THIS COST INFORMATION TO SUPPORT IMPROVED DECISION-MAKING AND PROACTIVELY MANAGE PRODUCT COSTS.
| Number of Pages : | 9 |
| Published : | 06/01/1993 |
