design to cost handbook
Design to cost is a management strategy and supporting methodologies to achieve an affordable product by treating target cost as an independent design parameter that needs to be achieved during the development of a product. A design to cost approach consists of the following elements: 1  An understanding of customer affordability or competitive pricing requirements by the key participants in the development process; 2  Establishment and allocation of target costs down to a level of the hardware where costs can be effectively managed;