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The role of product cost deployment in the early product management methodology within the WCM system – a case study

Mróz Andrzej

Management and Production Engineering Review

2020

Vol. 11, No. 4

13--24

World Class Manufacturing system consists of ten technical and ten managerial pillars. These, impacting directly and indirectly on each other, generate the flow of internal processes. Two of the mentioned pillars, Early Product Management (EPM) and Cost Deployment (CD) play a special role in the system, because they create a future strategic management of a company influencing design engineering, manufacturing and economy [1, 2]. Referring to the author’s previous publications on Early Product Management methodology [3, 4], the role of Cost Deployment pillar in the new product launch remains an important issue. Additionally, there is a noticeable lack of publications in this specific field of the WCM system. Therefore, a proper understanding of the relationship between these two technical pillars is the basis for effective project management for the implementation of new products. In this article, the correlation between EPM and CD will be highlighted whereas some critical remarks will be indicated. The main part of the article will describe: the current approach to project management according to the standards set by the WCM system and recommended improvements originated from EPM and CD pillars. The quality scientific methods used in this article are based on a case study of internal processes in an international plant specializing in agriculture machinery production and include elements of direct observation and theoretical analysis and synthesis. This paper refers to the presented issues in practical terms on the example of the methodology of managing of new launch product projects in terms of cost management. The purpose of this paper is to draw attention to the problem of the cost factor generated during the design phase and early implementation of the new product into production, which will enable effective cost management of new implementation projects.