cost management through product life cycle
DESCRIPTION
Cost Management Through Product Life Cycle. Presented By: Tamer A. Qaqish Pressed Steel Product Ltd Durham University. Contents. Research Objectives Definitions Product Life Cycle Summary of Research Case Study Summary & Conclusion. Research Objectives. - PowerPoint PPT PresentationTRANSCRIPT
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Cost Management Through Product Life Cycle
Presented By: Tamer A. Qaqish
Pressed Steel Product Ltd
Durham University
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Contents
• Research Objectives
• Definitions
• Product Life Cycle
• Summary of Research
• Case Study
• Summary & Conclusion
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Research Objectives
• To develop tools and techniques to manage the implementation and control of information system technologies in SME’s
• To develop tools and techniques to manage costing data through Product Life Cycle.
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Definitions
• Cost Management
• Technology Management
• Product Life Cycle Management
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Cost Management
Top Managemen
t
Improvement&
Control
Technology
Supply chain
Human Resources
CostManagemen
t
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Technology Management
Technology Management
SelectionImplementationControlImprove
Implementation
Control
Selection
Improve
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Product Life Cycle
Design ProductionDeliveryService
Planning
DesignPackage
PDM ERP Others
£ £ ££
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Design Stage
• 75% of cost can be controlled
• Technology
• Cost Estimation
• Parametric, Feature based, Cased Based Reasoning, and Others
• Design to Cost
• Target Costing
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Production Stage
• Actual Production Data
• Capacity Planning
• Technology
• Cost Management
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Delivery & Services
• Hidden Costs
• Technologies
• Cost Accounting
• Management Review
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Research & Models
• Select and Implement the Technology
• Technology Integration
• Cost Data Management
• Business & Operational Development
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Select and Implement the Technology
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Technology IntegrationDesign PDM ERP
Excel
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Costing Data Management
Estimate / Quotation
Production Actual Cost
Cost Analysis
Cost EstimationProduct Data
Design PDM ERP
Service/Delivery
Cost Reduction
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Business & Operational Development
Cost Analysis
ManagementReview
StrategicDecision
OperationalDecision
MarketImprovement
Team
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Business & Operational Development
• Data Analysis
• Operational & Strategic Decisions
• Cost Control /Reduction
• Business and Operational Improvements
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Case study PSP
PSP established in 1998 providing products for the building and cladding industry. These include many standard products as well as special bespoke products
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Case Study PSP• Small size fast growing
company• Make to order• Short Product Life Cycle• Technology• Management Structure• Resources • Product and Market• Services
YOUR COMPANY LOGO Cost Drivers Learning Event, 2nd November 2005
Summary & Conclusion
Profit = Price – CostEstimate
Control
Reduce