explaincar

Product Stage

The next level of Saving Opportunities can be found by examining the Should-Costing of current production parts. The saving potential can be enhanced further by selecting the optimal material and manufacturing process for each part in the existing design. The Should-Cost exercise would help in thorough understanding of the primary cost drivers associated with manufacturing the existing product – and establish a benchmark for what the current product “should cost.” The cost models would guide through an assessment of alternative processes and materials and provide cost information for the bill of material. Costs update automatically as and when there is a change in tolerances, surface finishes and other part details. Gradually this would help to optimize the product cost.