{"product_id":"target-costing-and-value-engineering","title":"Target Costing and Value Engineering","description":"What would happen if everyone in your company followed a disciplined approach to cost reduction? Go ahead -- imagine it. What would it look like? How can it be done\u003cbr\u003eThe answer --smart cost management\u0026amp;lt\u003cbr\u003eEffective cost management must start at the design stage. As much as 90-95% of a product's costs are added in the design process. That is why effective cost management programs focus on design and manufacturing. The primary cost management method to control cost during design is a combination of target costing and value engineering.\u003cb\u003eTarget Costing Objectives:\u0026amp;lt\u003col\u003e Identify the cost at which your product must be manufactured at if it is to earn its profit margin at its expected target selling price.Break the target cost down to its component level and have your suppliers find ways to deliver the components they sell you at the set target prices while still making adequate returns.\u003c\/ol\u003e\n\u003cb\u003eValue Engineering:\u003c\/b\u003eThe result: Added value for your company (development costs on-line with added value for your company; development costs on-line with selling prices) and added value for your customer (higher quality products that meet, possibly even exceed, customer expectations.)\u003c\/b\u003e","brand":"Taylor \u0026 Francis","offers":[{"title":"Default Title","offer_id":44521814720750,"sku":"9781563271724","price":91.2,"currency_code":"AUD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0630\/9612\/7726\/files\/9781563271724_1e011a13-a1df-4935-85af-9d3ba3ffcf3c.jpg?v=1704787204","url":"https:\/\/bookland.com.au\/products\/target-costing-and-value-engineering","provider":"Book Land AU","version":"1.0","type":"link"}