Abstract: Cost engineering helps the firms in decision-making with respect to product development. It is primarily concerned with cost estimation and cost control. Decisions made during the design phase have a significant influence on development and life cycle costs. The effective cost management during the design phase of a product is essential to develop a product with minimum cost and desired quality of the customer. In this paper a mathematical model is established by incorporating cost engineering techniques such as Target Costing (TC) and Value Engineering (VE) with Quality Function Deployment (QFD) to develop a product. An illustrative example is also presented.
Keywords: Cost engineering, Quality Function Deployment, Value Engineering, Target costing
Recieved: 20.01.2011 Accepted: 15.02.2011 UDC: 657.478