CHAPTER 10

VCMS and Product/Service Development

The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed.

Henry Ford1

One of the most important activities of a company is using the profit earned in the market to develop new products and services that bring future sales into the company. As we’ve seen, the value-based cost management system (VCMS) captures this investment from across the organization with BVAF, or Business value-add—Future. The VCMS has even more power, though, helping to focus spending based on customer-defined preferences and supporting the costing exercise that is critical to new product development. Clearly, the ...

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