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Proactive Cost Management: Integrating Use Phase Data to Reduce Uncertainty

Proactive Cost Management: Integrating Use Phase Data to Reduce Uncertainty

Year: 2016

Section: Methodology: General Applications

Editor: Boks, Casper; Sigurjonsson, Johannes; Steinert, Martin; Vis, Carlijn; Wulvik, Andreas

Author: Wilberg, Julian; Maisenbacher, Sebastian; Lindemann, Udo

Series: NordDESIGN

Institution: Technical University of Munich, Germany

Section: Methodology: General Applications

Pages: 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: Value Engineering, Target Costing, Cost Management, System Engineering

ds conferenceNEW DATE: NordDesign 2016, 10th - 12th August 2016, Trondheim, Norway.

NEW DATE: NordDesign 2016, 10th - 12th August 2016, Trondheim, Norway.Welcome to NordDesign 2016. We are pleased to announce that NordDesign 2016 will be hosted in the beautiful city of Trondheim on 10th-12th August 2016. The conference will take place at NTNU and is organised by the Department of Product Development and Materials in collaboration with the Department of Product Design. We are calling for evidence based academic work on topical issues on design, development and innovation that strengthens both our theoretical understanding and the connection between...

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Keywords
Design 2010