Design-to-cost

Design-to-Cost (DTC), as part of cost management techniques, describes a systematic approach to controlling the costs of product development and manufacturing. The basic idea is that costs are designed "into the product", even from the earliest concept decisions on and are difficult to remove later. Thus costs are seen as an equally important parameter besides feature scope and schedule, the three taken together yielding the well-known project triangle.

By taking the right design decisions as early as during the initiation and concept phase of the product life-cycle, unnecessary costs at later stages can be avoided. But DTC also tries to capture the necessary measures for cost control during the complete development cycle. In DTC, cost considerations also become part of extended requirements specifications.[1]

In contrast to the closely related target costing, DTC does not mean a product will exactly reach a defined cost, rather, it is about "considering cost as a design parameter in your product development activities".[2] DTC can also be contrasted with Design-to-value which emphasizes the value that can be delivered to the customer, instead of the production costs for the manufacturer or company.[2]

Design-to-cost strategies

In order to have an efficient design-to-cost, companies have developed several techniques and strategies:

gollark: Zuckerberg is the lizard, get it right.
gollark: Are trillionaires okay?
gollark: Also, I like being able to script things.
gollark: Installing a Linux distro is *less work* than trying to uninstall all the bloatware and advertising and resource waste and random spam and telemetry and having to do that every time it updates or does something stupid.
gollark: I don't want to have to.

See also

References
  1. http://www.cs.odu.edu/~mln/ltrs-pdfs/iaa-ceso-11-90.pdf
  2. http://www.hillerassociates.com/design-to-value-versus-design-to-cost-versus-minimum-viable-product/
  3. "16 Secret Tips for Hardware Startups to Save Money and Reduce Risk". PREDICTABLE DESIGNS. August 2, 2017. Retrieved June 18, 2020.
  4. "14 best ways to reduce production cost, for electronics and more". Titoma. June 16, 2020. Retrieved June 18, 2020.
  5. Research, Infiniti (September 18, 2019). "COST REDUCTION STRATEGIES IN MANUFACTURING: A GUIDE TO EFFECTIVELY TACKLE YOUR MANUFACTURING…". Medium. Retrieved June 18, 2020.
  6. Lewis, Michael. "14 Ways to Reduce Materials & Cost of Goods Sold in Your Business". Money Crashers. Retrieved June 18, 2020.
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