A study has revealed that more than 50% of all companies are exceeding their budgeted costs for the following prime reasons:

• Technical changes (close to start of production, in particular)
• Price increases of raw materials
• Higher R&D expenses than planned
• Exceeding target-price settings in purchasing

Don’t allow your situation to get thus far! By implementing the right design-to-cost strategy, relying on transparency and reasonable processes, you will keep your costs under control.

Managing Cost Creep

You are close to start of production and come to realise that project costs have exceeded the budgeted allowances little by little. Many companies tend to react by introducing urgent cost-saving measures, which entail quality degradation for the customer and, ultimately, loss of sales in many cases.

This can be avoided by employing the appropriate methods right from the beginning. A design-to-cost development process, which relies on accurate calculations (full-cost accounting per workplace), will ensure targeted control of your costs.

Improve your competitiveness and profit situation by revising and enhancing your design-to-cost process. Based on solid facts you will easily take the right technical decision and will have strong and convincing arguments in negotiations.