A methodology to diagnose the target cost in a manufacturing process

Abstract

Techniques of target cost management have been studied to help companies identify the causes of rejected parts because of incorrect design choices. A part of the problem can be removed in the design phase by developing a model to estimate costs. This provides the designer with a tool to carry out cost estimations and make correct choices. The model also permits the determination of the estimated cost of a new component in a direct and rapid way belonging to one of a family of parts well-understood. This study was made for an important Italian company.