Enable early and ongoing visibility into detailed cost drivers and evolving estimates to ensure products meet landed cost targets.

Best Practices: Key Product Cost Management Process Improvements Enabled by PTC Capabilities

Product Cost Management: Best Practices
  • Target cost management: Establish cost targets at the product, function and/or component level. Provide program stakeholders with visibility into cost estimate status against the cost targets.
  • Part cost estimation: Establish multiple-part cost estimates based on characteristics of part. Estimation of cost may be based on development stage of part, different manufacturing techniques and whether the part is to be made internally, outsourced or purchased.
  • Product configuration cost analysis: Perform multiple analyses of different configurations of the BOM throughout the product development process to assess if the cost targets are being achieved. Determine the critical cost drivers and take action to validate or reduce cost estimates.
  • Product analytics results sharing to enterprise: Share compliance, materials, cost and environmental performance metrics to key stakeholders throughout the enterprise, beginning early in product development.