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Cost-Efficient Design

Klaus Ehrlenspiel
Klaus Ehrlenspiel
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Alfons Kiewert
Alfons Kiewert
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Udo Lindemann
Udo Lindemann
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Mahendra S. Hundal
Mahendra S. Hundal
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ASME Press / Springer
Publication date:

This chapter presents the methodology and organization of cost management from the perspective of product development. First, the basic elements of cost management are related to the comprehensive methodology of integrated product development. This comprises the essential points of the product lifecycle, organization, methods, and tools. Within this context, the practical realization of cost management is discussed. The chapter closes with a short overview of the best-known alternative cost management techniques.

4.1 Elements of cost management
4.2 Processes in the product lifecycle
4.3 The human being in the organization
4.3.1 The individual and the work within the team
4.3.2 Integrative forms of organization
4.4 Methods of cost management in product development
4.4.1 Solving problems with the procedure cycle
4.4.2 Strategic organization of the procedure
4.5 Integration of methods for target-cost oriented development
4.5.1 Task clarification: Requirements clarification, target costs establishment and their distribution Clarify the requirements Function analysis Establish the total target costs Dividing the total target costs into partial target costs
4.5.2 Solution search: How are low-cost solution approaches developed? Search for available solutions Solution search by using physical effects Variation of shape Solution search with the help of creativity techniques Concept development with the morphological matrix
4.5.3 Solution selection: How can the best solution be selected? Analysis of product properties Evaluation and decision Summary of the methodical procedure
4.6 Resources and means for supporting cost management
4.6.1 Advising on production and cost in design
4.6.2 Cost structures
4.6.3 Relative costs
4.6.4 Rules
4.6.5 Checklists
4.6.6 Portfolio analysis
4.7 An example of the methodical procedure: A marking laser
4.7.1 Task clarification
4.7.2 Solution search
4.7.3 Solution selection
4.8 The practice of cost management
4.8.1 Introduction to cost management
4.8.2 How much effort is justified for cost reduction?
4.8.3 Implementing cost management Interdisciplinary work methodology Planning, operation and control of cost reduction projects Company-internal prerequisites Information and continuing education
4.9 Other well-known cost management methods
4.9.1 Overview
4.9.2 Value analysis
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