80 percent of product costs are already being defined in the first 20 percent of the product lifecycle (DARPA study). You cant rely in the product development phase on Enterprise Resource Planning (ERP) for product cost calculations, because then it is already too late. At this time relevant product decisions have already been made and resulting costs are defined. Instead, you should be able to calculate product and tool costs, and investments and estimate profit forecasts for product launches at an earlier stage.

Traditional methods for cost calculations (such as spreadsheet calculations or other cost management solutions) are not directly integrated into the development process. Take advantage of the PLM system that is use for your product development. You can make a reliable estimation of you product costs and control them early in the product lifecycle.

Learn more about the cost calculation software Teamcenter Product Cost Management.