Hiller Associates, the leading strategic consulting firm in the area of product cost and CIMdata, Inc., the leading global PLM strategic management consulting and research firm announce the release of a new research report on Product Cost Management in manufacturing.
Product cost is one of the top attributes that must be delivered by product development. However, very few companies are able to consistently meet their product profit targets at launch. With 70-90% of every revenue dollar in most manufacturing companies being absorbed by product cost, it’s easy to see why the cost of a product is so critical to the bottom line. Over the years, companies have turned to a variety of Product Cost Management techniques to control this largest of expenses on the income statement, including:
- Purchasing negotiation, make vs. buy analysis
- Spend analytics
- Design-to-Cost (DTC)
- Feature Based Costing (FBC)
- Design for Manufacturing (DFM), Design for Assembly (DFA)
- Competitive teardown and benchmarking
- Target costing and Activity Based Costing (ABC)
- Value Analysis / Value Engineering (VA/VE)
- Parts re-use
Hiller Associates and CIMdata surveyed respondents from many industries and drew upon decades of their own experience in the field to provide a comprehensive report that discusses the state of product cost today and how well companies are doing at meeting cost targets. This report defines each of the Product Cost Management techniques and puts them in perspective. It discusses the priority of cost as a product attribute versus time-to-market, quality, performance, and other product attributes. It also discusses how extensively cost targets are set in industry today, what percent of products meet cost targets, what product cost management techniques companies are using, and what software tools can help.
Hiller Associates and CIMdata analyze what industry experts believe is holding companies back in meeting product profit targets in terms of culture, process, tools, and people. And finally, the report examines how product cost management relates to the belief in that “80% of the cost of a product is determined in the first 20% of the lifecycle?”
Cost Commitment and the Product Development Lifecycle
The Hiller Associates / CIMdata report, Product Cost Management in Discrete Manufacturing, is available for purchase by clicking 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 providers 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, follow us on Twitter: http://twitter.com/CIMdataPLMNews, 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 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. Hiller Associates has helped Fortune 1000 clients save tens of millions of dollars through our Product Cost Management engagements. If you have a challenge with Product Cost Management in culture, process, roles, or tools we would like to help.
Hiller Associates also maintains practices in software product management, financial analysis, inbound marketing, make/buy analysis, strategic planning and market messaging, business plan development and funding, and cost modeling.
Hiller Associates works both independently for clients and with its own resources and with other partners and other consulting experts in order to deliver the best solutions for the end client.
To learn more about Hiller Associates’ services, please visit their website at www.hillerassociates.com or contact us at 4729 N. Dover, Chicago, IL 60640, Tel: +1 217.369.8687.
