• On Tuesday November 21, 2017  please join Christopher Rösner, General Requirements Manager at e.GO mobile AG, Tech-Clarity's Michelle Boucher, and Che Curnew, Senior Technical Sales Specialist at PTC for a discussion on the benefits of a better approach to requirements management. This session will be an interactive interview to share different perspectives and experiences on requirements management. The discussion will include topics such as:How a Requirements Management solution can help your business How to identify specific requirements needs How to select the right solution for your … [ read more ]

    Selecting the Right Requirements Management Solution (webcast)
  • How do leading companies manage and operate their labs and what impact does that have on their business? Please share your thoughts in our short Chemical Lab Digitalization Survey.Tech-Clarity invites you to join a research study on best practices in lab management. If you've already completed the survey  –> please share with a colleague or you social media friends using the “Share/Save” buttons above. If you haven’t taken the survey  –> please: Take the survey nowComplete the survey and receive a free copy of the final report.In addition,  25 eligible* respondents will … [ read more ]

    Chemical Lab Digitalization (survey invitation)
  • Close the Engineering Skills Gap:Prepare New Graduates to Be Real-World Ready shares new research on the gap between the skills graduating engineers have and skills companies would like to see. The research examines the evolving needs of the engineering department. The results reveal that engineering departments expect to grow so we will need more engineers. On top of that, the required skills will also expand. Complicating the situation, as the most experienced engineers approach retirement age, companies must figure out how to replace that knowledge. This makes the skills of new engineers especially … [ read more ]

    Close the Engineering Skills Gap (survey findings)
  • This infographic shares our research on how Top Performing companies achieve better NPDI performance than their competitors, excelling at revenue growth, margin expansion, and delivering innovative products. The infographic starts by providing a graphical view of the unfortunate truth about new product development, companies miss their quality, cost, requirements, regulatory compliance, project budget, and time to market targets far too often. The graphic shares perspectives from our research.The piece is an Autodesk infographic leveraging data from our 7 Ways to Outperform Your Competitors in … [ read more ]

    How to Beat Your Competition in Product Development (infographic)
  • Tech-Clarity's Jim Brown hosted a panel discussion at the recent Dassault Systèmes 3DEXPERIENCE Forum in Florida. The participants shared their perspectives on the cloud and their experience moving PLM to the cloud using the 3DEXPERIENCE Platform. Participants include:Kavi Parupally, Senior Director of Business Apps, Rockwell Collins Javier Glatt, CEO, CADMakers, Inc. Jeff Walters, VP Engineering, Globe Trailershttps://youtu.be/qqjE-ZtJOKc … [ read more ]

    Accelerating your Business & Reducing Complexity with the Cloud (panel discussion)

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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