12. MILESTONE
TASK
Project Initiation
START DATE
DURATION
June 2012
2 months
Orientation Research
August 2012
2 months
Strategy
October 2012
1 month
Exploration/Development
November 2012
1 month
Refinement
December 2012
1 month
January 2013
1 month
March 2013
2 months
Production/Launch
Project Completion
13. COST & BUDGET MANAGEMENT
•
Recurring production cost = production
labor + direct materials + process costs
+overheads + outside processing
•
Non-recurring costs = Development Cost
+ Tooling
•
Product costs = Recurring production cost
+ Allocated non-recurring costs
•
Product price (acquisition cost) = Product
cost + Selling, General & Admin cost +
Warranty Costs + Profits
•
Life Cycle Costs = Acquisition Costs +
Other related Capital Costs + Training
Costs + Operating Costs + Support Costs +
Disposal Costs
15. TARGET COSTING
A cost management tool for reducing the overall cost of a product over its entire
life cycle with the help of production, engineering, research and design.
A target cost is the maximum amount of cost that can be incurred on a product
and with it the firm can still earn the required profit margin from that product at a particular
selling price.
COST MODELS & COST DATA
A product cost model or life cycle cost provides an objective basis for evaluating
design alternatives from a very early stage in the development cycle.
The product cost model is used to project and accumulate product costs to use as
a factor in evaluating design alternatives and to refine the design to meet cost targets.
16. PROJECT EXECUTION
(THE 3RD PHASE)
We build the physical project deliverables and present them to the client
for signoff. It typically consumes the most energy and resources.
