Design for Cost - IMTMA/D009

Programme Background

The thinking that product cost is the output of design process is outmoded. To be successful with new products, we should know that target product cost is a very important input to the new product design process.

The following is a quote from Annual Report Toyota Motor Corporation 1992 "If Toyota does one thing better than other automakers, it is cost management. After earning a reputation for quality and fuel efficiency in the 'economy models', we moved successfully into upscale models, like the LEXUS line. But we still pride ourselves in the cost competitiveness of our products in every price stratum. The history of Toyota is a story of unceasing efforts to reduce costs."

Keeping this in view, Indian Machine Tool Manufacturers' Association (IMTMA) is organizing a 2 day programme onDesign for Target Cost through Value Engineering on 14 - 15 December 2016 at Bangalore. The training programme is aiming to show the participants as to how Japanese firms successfully use target costing methodology and three levels of value engineering (VE) to design products that have the Functionality and Quality customers demand at a Cost that allows the firms to make adequate profits when the products are sold at their target selling prices, thus building what is known as the Survival Triplet.

Focus Areas
  • How to use target costing methodology to ensure functionality and quality at a targeted cost  
  • Survival triplet concept
  • Three level value engineering (VE) approach to design products
  • The first phase – How to determine the market driven target product cost, which transmits the market pressure on to the organization.
  • The second phase – How to design for system level target cost of new product, which challenges the creativity of the product designers.
  • The third phase – How to design for component level target cost, which challenges the creativity of component designers and suppliers.
  • Decomposing the product level costs up to component level target costs, driving down the target costing approach to the component designers and suppliers. Case Studies sharing first hand experience as a Supplier of components and Subassemblies to Toyota for more than a decade.

The dates of this programme is not yet announced. For more information please click below button.


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