Life cycle costing can be traced and aggregated in the value chain (from research and development to final customer service and support), and can be allocated to the business function costs of each product. Product life cycle pricing is the price determined based on all costs in the value chain throughout the product's entire time span.

new product investment

Project research and development expenses

value engineering analysis

Reengineering

New product development cost analysis to achieve the best combination of cost and performance

Reduce the number of times a design needs to be modified before it is shipped to production

1. Project milestones include inventory of new product warehouses and confirmation of how to dispose of remaining materials.

2. Project changes are cost controlled through budget control.

3. Analyze the rationality of R&D costs through input-output and benchmark analysis.

1. How to dispose of remaining waste after trial production is completed

2. How to deal with the remaining materials due to minimum order quantity

3. R&D expense indicator assessment, whether the actual R&D expenses are lower than the R&D budget

Investment Control: New Project Investment Budget

Material Control: Material Cost

Labor control: personnel and labor costs

Project changes come from customers, and manufacturers should charge customers a certain fee to control product profitability.

Project changes come from within the manufacturer. The manufacturer should establish a cost budget for R&D and performance assessment of technical changes to control product profitability.

Changes in manufacturing projects often lead to changes in tooling, and manufacturers also need to consider increased costs.

Project changes