Tuesday, January 19, 2010

Delight your customers while making a profit

Delighting your customer while making a profit
Target Costing is a simple, straightforward process that can have significant impact on the health and profitability of many, if not most, businesses. It doesn't require an army of specialists, large-scale software implementations, or complex management structures and procedures. It's mostly logical, disciplined common sense that can be imbedded into a company's existing procedures and processes.
We spent our recent professional careers applying Target Costing to a wide range of products, processes and procedures in a large manufacturing company. We quickly came to learn that Target Costing helps to:
· Assure that products are better matched to their customer's needs.
· Align the costs of features with customers’ willingness to pay for them.
· Reduce the development cycle of a product.
· Reduce the costs of products significantly.
· Increase the teamwork among all internal organizations associated with conceiving,
marketing, planning, developing, manufacturing, selling, distributing and installing a product.
· Engage customers and suppliers to design the right product and to more effectively integrate the entire supply chain.