Knowledge Base Repository

In addition to research papers, the Design Society is developing several valuable resources for those interested in the study of design. These include a repository of PhD theses, a library of case studies and transcripts of design activities, and an archive of our newsletters. Please note that these resources are accessible exclusively to Design Society members.

Proactive Cost Management: Integrating Use Phase Data to Reduce Uncertainty

Wilberg, Julian; Maisenbacher, Sebastian; Lindemann, Udo


Type:
Year:
2016
Editor:
Boks, Casper; Sigurjonsson, Johannes; Steinert, Martin; Vis, Carlijn; Wulvik, Andreas
Author:
Series:
NordDESIGN
Institution:
Technical University of Munich, Germany
Section:
Methodology: General Applications
Page(s):
072-082
ISBN:
978-1-904670-80-3
Abstract:
Manufacturing firms need to develop products for competitive markets with a distinct cost-value-ratio in order to stay successful in the long run. Literature provides approaches such as Target Costing, Value Engineering, and Integrated Value Engineering. From a methodic standpoint support is available for cost management, but the approaches depend highly on the information input (e.g., customer needs, market situation). From a strategic standpoint cost management needs to be proactive because a reactive strategy is not successful and sustainable in highly dynamic and competitive markets. Companies are at the same time confronted with challenges that arise due to the advancing servitization and digitalization. Offering such products establishes a feedback loop, which provides the manufacturer with use phase data. The data is valuable for the cost management because it can help to reduce uncertainty and make better informed decisions. However, using such data for cost management requires an adjusted strategy for proactive cost management. This paper analyses the opportunities that use phase data offers for companies and proposes an initial and theoretical process that supports companies in developing a tailored strategy for proactive cost management.
Keywords:

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