CIMdata PLM Industry Summary Online Archive
18 December 2012
CIMdata News
CIMdata & Hiller Associates Announce New Survey on Product Cost Management
CIMdata, Inc., the leading global Product Lifecycle Management (PLM) strategic management consulting and research firm is partnering with Hiller Associates, the leading consulting firm in Product Cost Management, to conduct a survey to better understand how companies manage their product costs.
A successful product delivers on many attributes (e.g., time-to-market, performance, quality, fuel and efficiency). One of the most difficult attributes upon which to consistently deliver at product launch is product cost. Product cost is tricky, because unlike many other product attributes, it is not controlled exclusively by the actions of engineering. Product cost is the result of choices by engineering, sourcing, supply chain, manufacturing, and suppliers. With between 70% and 90% of every dollar of revenue in most product and manufacturing firms being consumed by product cost, it is understandable that the topic always ranks high when you ask product development executives what they are most concerned about.
Product Cost Management (PCM) has been used in a generic sense on the Internet since 2000, but was defined and made popular by Eric Arno Hiller, the Founding CEO and Chief Product Officer for many years at aPriori. Eric defines PCM as “An agreed, coherent, and publicized system of culture/goals, processes, people, and tools following the product lifecycle, that ensures the product meets its profit (or cost) target on the day that it launches to the customer.” PCM also includes tools and processes that can help reduce product cost after launch, as well.
In conducting this survey CIMdata and Hiller Associates would like to understand how firms prioritize product cost versus other product attributes, how successful firms are delivering on product cost targets, and how companies do product cost management. The survey takes about 10 minutes to complete and respondents will be provided with a copy of the final results. Responses will be held in the strictest confidence and will not be attributed to any person or company.
To take part in the survey click here.
About CIMdata
CIMdata, a leading independent worldwide firm, provides strategic management consulting to maximize an enterprise’s ability to design and deliver innovative products and services through the application of Product Lifecycle Management (PLM) solutions. Since its founding in 1983, CIMdata has delivered world-class knowledge, expertise, and best-practice methods on PLM solutions. These solutions incorporate both business processes and a wide-ranging set of PLM-enabling technologies.
CIMdata works with both industrial organizations and suppliers of technologies and services seeking competitive advantage in the global economy. In addition to consulting, CIMdata conducts research, provides PLM-focused subscription services, and produces several commercial publications. The company also provides industry education through PLM certificate programs, seminars, and conferences worldwide. CIMdata serves clients around the world from offices in North America, Europe, and Asia-Pacific. To learn more about CIMdata’s services, visit our website at www.CIMdata.com or contact CIMdata at: 3909 Research Park Drive, Ann Arbor, MI 48108, USA. Tel: +1 (734) 668-9922. Fax: +1 (734) 668-1957; or at Oogststraat 20, 6004 CV Weert, The Netherlands. Tel: +31 (0) 495 533 666.
About Hiller Associates
Hiller Associates (HA) is a business performance consultancy that specializes in Product Cost Management (PCM), helping discrete manufacturing companies reduce product cost, whether the product is before or after launch. Our practice sits in the nexus between design engineering, finance, purchasing, and manufacturing. HA has helped Fortune 1000 clients save tens of millions of dollars through our Product Cost Management engagements. To learn more about Hiller Associates, visit our website at www.hillerassociates.com or contact us at Tel: +1 (217) 369-8687 or answerstoquestions@hillerassociates.com.
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