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In this book you will learn about the practices of seven companies described via case studies, including insights, lessons for adopters, the competitive context that led to implementation, the design of the systems, and the process used. In today's highly competitive environment, your company must learn to develop low-cost, high-quality products that have the functionality customers demand. Target Costing and Value Engineering represents the missing piece in the puzzle of how lean enterprises can successfully compete. What would happen if everyone in your company followed a disciplined...

Four questions determine whether a company is using interorganizational cost management.Does your firm set specific cost-reduction objectives for its suppliers? Does your firm help its customers and/or suppliers find ways to achieve their cost-education objectives? Does your firm take into account the profitability of its suppliers when negotiating component pricing with them? Is your firm continuously making its buyer-supplier interfaces more efficient?If the answer to any of these questions is no, your firm risks introducing products that cost too much or are not competitive. The full...