Targeted development and sustainably securing margins with design-to-cost

In times of rising costs and tougher competition, it is becoming increasingly important for companies to secure their margins as early as the product development stage. This is precisely where the design-to-cost concept comes in: it ensures that costs are consistently kept in view during the creation of a product - without compromising on quality or functionality.

What is design-to-cost?

Design-to-cost (DtC) is a strategic approach to product development in which costs are considered an equally important development goal alongside function, quality and time. The aim is to design a product in such a way that it can be manufactured within a specified cost framework - right from the start.

Why design-to-cost is so effective

- Early cost awareness: Costs are not only calculated at the end, but are taken into account in every development phase.

- Avoidance of expensive rework: Early recognition of potential savings reduces subsequent corrections and shortens development cycles.

- Strengthen competitiveness: Products can be made more attractively priced - without compromising on quality.

- Increase efficiency: Clear targets avoid unnecessary loops in the development process.

How to put it into practice

Successful design-to-cost requires interdisciplinary cooperation: development, purchasing, production and controlling must be closely coordinated. Tools such as target costing, value analysis and benchmarking support the analysis of cost drivers and optimization potential. At the same time, a systematic innovation process helps to find creative solutions for cost-sensitive product designs.

A strategic advantage for every company

Companies that rely on design-to-cost gain a sustainable advantage: they develop marketable products at competitive prices and at the same time secure their earnings situation - right from the initial concept design. This not only reduces the risk of expensive misdevelopments, but also significantly shortens the time to market.

Conclusion:

Design-to-cost is not a cost-cutting program, but an intelligent, future-oriented development approach. If you want to secure margins and implement innovations economically, there is no way around this concept

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