6 Influencing the Total Costs Available to Purchase

Among costs, the greatest importance is attributed to lowering manufacturing costs, usually within the framework of the most cost-efficient possible product development. However, it is frequently overlooked that this is not the only way product development influences the total costs in a company. A separate chapter (Chapter 7) is dedicated to the lowering of manufacturing costs. Here we will show some important influences that product development has on the total costs of the company (see Fig. 6.1). The lowering of these costs is only one aspect of the problem; it is just as important to mold the company structure so that market changes can be reacted to quickly and flexibly, and that innovation is encouraged.