Design-to-cost

Design-to-Cost (DTC), as part of <a href="/facts/Cost_management/oet8Aj4v">cost management</a> techniques, describes a systematic approach to controlling the <a href="/facts/Cost/V1GX4vhw">costs</a> of <a href="/facts/Product_development/ogcXTIco">product development</a> and <a href="/facts/Manufacturing_cost/2eoGRwo7">manufacturing</a>. The basic idea is that costs are designed "into the product", even from the earliest <a href="/facts/Concept/VWB6yhQp">concept</a> decisions on and are difficult to remove later. These costs are seen as an equally important parameter besides feature scope and schedule, the three taken together yielding the well-known <a href="/facts/Project_triangle/NylkbaBg">project triangle</a>.
By taking the right design decisions as early as during the initiation and <a href="/facts/Concept_phase/G3U6gtBv">concept phase</a> of the <a href="/facts/Product_life-cycle/G3U6gtBv">product life-cycle</a>, unnecessary costs at later stages can be avoided. But DTC also tries to capture the necessary measures for cost control during the complete <a href="/facts/Development_cycle/cIDtuNPN">development cycle</a>. In DTC, cost considerations also become part of extended <a href="/facts/Design_specification/QzdjouoA">requirements specifications</a>.
In contrast to the closely related <a href="/facts/Target_costing/Kcp95EzT">target costing</a>, DTC does not mean a product will exactly reach a defined cost, rather, it is about "considering cost as a design parameter in your product development activities". DTC can also be contrasted with Design-to-value which emphasizes the value that can be delivered to the customer, instead of the production costs for the manufacturer or company.

Design-to-cost open-in-new

Design-to-cost