6

Cost Categories

Cost must be designed out of the product and production processes, because it is very difficult to remove cost through cost reduction measures after the product has been designed. Many cost reduction efforts may not even pay off the expense of the cost reduction effort, which may even lose money on a total cost basis.

Most of this book shows how to lower parts cost (Chapters 5 and 9), labor cost (Chapters 4 and 8), and system cost (Chapters 1, 2, 3, and 10). This chapter focuses on how not to lower these costs and how to lower overhead cost.

This chapter provides a company-wide perspective to all company costs, which will be quantified by Total Cost systems, while Chapter 11 will show how to implement DFM throughout the company. ...

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