• Five Ways Shape Search Drives Business Value shares the shortcomings of traditional search methodologies and how geometric search can complement them to drive new business value. The report includes some basics about shape search, five tangible ways it can improve business performance, and an example of how to calculate the ROI of a shape search investment.Please enjoy the summary below, or click the report or title to view the full PDF courtesy of our sponsor Siemens PLM (free of charge, no registration required).For more information, please visit the Siemens PLM Community blog to read the Shape … [ read more ]

    Five Ways Shape Search Drives Business Value (eBook)
  • Jim Brown contributed a guest post to the Siemens PLM Community blog discussing how R&D in the food and beverage industry can step up to the digital age to combat smaller, innovative companies that embrace the digital enterprise. This is the first of several posts that drill down on Surviving the New Competitive Landscape in Food and Beverage, a post that shares three ways that consumer packaged goods (CPG) companies can start their digitalization journey and discusses how that can help them avoid industry disruption.The first opportunity we're looking into is how the digital enterprise can improve … [ read more ]

    R&D Enters the Digital Age (guest post)
  • Please join Tech-Clarity's Michelle Boucher, Mark Turner from Alcon Labs, and Swapan Jha from PTC on Tuesday September 12, 2017 for a discussion on the right software solution for medical device engineering. The discussion will feature an interactive discussion between the panelists coving topics such as:Challenges facing medical device manufacturers. Why to consider the complete product lifecycle with respect to:Managing product and requirements. Transitioning from document to product centric approaches. Enabling smart and connected products.The best selection criteria for … [ read more ]

    Selecting the Right PLM Software for Medical Device Engineering (webcast)
  • Jim Brown contributed a guest post to the Siemens PLM Community blog discussing the opportunity for food and beverage companies to leverage digitalization and the digital enterprise to combat market disruption from new, innovate companies that are challenging current industry leaders. The post offers several ways that consumer packaged goods (CPG) companies can get started on their digital journey, achieve tangible business value, and combat challengers like Blue Apron and Amazon Fresh that are disrupting the status quo.The full post, Surviving the New Competitive Landscape in Food and Beverage, can be … [ read more ]

    Digitalization in Food and Beverage (guest post)
  • Dassault Systèmes continues to make significant progress on the 3DExperience vision they laid out 5 years ago. This strategy has seen them transform from a software vendor offering distinct solutions for a variety of functional areas to a company that leads with a strong business transformation message backed up by a platform of solutions. I dropped "PLM" from the title of last year's strategy review. I feel even better about that decision a year later. They now have a broad software suite brought to market as solutions tailored to support key initiatives in the vertical industries they serve. As times goes … [ read more ]

    Dassault Systèmes Strategy 2017+

Product Cost Management – A Knowledge Based Approach to Optimizing Product Cost


PCM ThumbProduct Cost Management – A Knowledge Based Approach to Optimizing Product Cost explains how manufacturers can design products for optimal cost in order to improve profitability. The research shares interviews with three industrial manufacturers on the way they work with their supply chains to reduce cost using an analytical, fact-based methodology to drive out unnecessary cost and negotiate fair pricing. The interviews also point out the value of enterprise-class software to enable PCM.

Please enjoy the summary below, or click the report or title to download the full PDF (free of charge, no registration required).

For more information on PCM from our sponsor please visit Siemens PLM’s Teamcenter Product Cost Management page.

Please also see the related Tech-Clarity TV Episode – Optimizing Product Cost with PCM

Executive Overview

Many things factor into the profitability of a product. Innovation, satisfying customer wishes, and product performance drive sales, command price premiums, and boost top-line results. These get a lot of attention and engineers focus passionately on the form, fit, and function of their designs. But engineers don’t have the ability to evaluate the product cost impacts of their decisions to drive profitability from the expense perspective.

Too few companies include a thorough “design for cost” analysis in their product development process to optimize profits. Engineers must optimize cost and make design tradeoffs early in the lifecycle when there is still design flexibility. “You need to have the right concept early on,” advises the Manager of Cost Engineering for a major automotive OEM. “The leverage you have is much higher when you start.” It’s critical to get the cost right as early as possible, particularly for high-volume parts.

Most engineers don’t have visibility to the impact their decisions have on cost. They can’t optimize cost with other design parameters because they don’t have the right information. Product Cost Management (PCM) processes and software enable manufactures to design for cost by providing early visibility to the cost implications of design decisions. PCM allows companies to simulate and evaluate different manufacturing scenarios to develop an ideal “should cost” model based on detailed knowledge of materials, manufacturing processes, and supply chain costs.

PCM benefits go beyond design. Most sourcing efforts result in suboptimal pricing because they aren’t based on how much a part should cost. Predicting manufacturing and supply costs confidently helps companies negotiate better prices based on facts and enables transparent, open discussion with suppliers. “We tell suppliers we aren’t looking for a cost reduction,” explains the Manager of Design Costing and Analysis for an agricultural machinery producer. “We want to improve their process and decrease their work so they can reduce the cost. It’s critical to start the discussion this way.” Beyond savings from one-time negotiations, PCM helps educate suppliers on how to get closer to an ideal should cost model. This win-win approach sets up continuous improvement with vendors to improve prices without putting unrealistic pressure on suppliers to blindly reduce cost. In the end, PCM changes negotiations to a battle of knowledge versus a battle of will and drives more sustainable cost reduction over time.

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