Introduction to Product Cost Management
A company’s health and longevity are linked to how well it can sustain and grow its profits over time. From a simplified perspective, the company can achieve this longevity by (1) increasing its revenue, and/or (2) improving its profit margin. This six-part-series focuses on the later: improving profit margins via successful product cost management during an R&D project. The series includes the following sections:
- Set the Tone Early. Check Back with the Market Often.
- Create Transparency
- Teach & Empower
- Align Key Cost Decisions with Program Schedule
- Execute. And Document the Decision Logic.
The sections flow in chronological order, although it is important to know that many of these steps are only effective when they are sustained in parallel throughout the entire project timeline. This will become more clear as we progress through the sections together.Continue reading