Product development process with focus on value engineering and target-costing: A case study in an automotive company [An article from: International Journal of Production Economics]

This digital document is a journal article from International Journal of Production Economics, published by Elsevier in 2007. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
This research suggests a methodology for the product development process in an automotive company, aiming at the correct systematic approach of Value Engineering (VE) and target-costing in cost management. VE and target-costing are complementary processes, because while one allows the identification of where cost reduction could be achieved, the other shows the target to be achieved to guarantee the long-term profitability plan of a company. In order to do that, work plans were developed, with the application of the VE methodology at three subsequent stages: concept, project and validation. This proposed approach was validated in a case study focused on the engine-starter system of a vehicle, aiming at improved product cost, functionality and quality accomplishment, in accordance with customer needs and the company strategy.