ABSTRACT
We are still in the step ‘‘Set the Target,’’ as shown in Fig. 4.1. In the last chapter, we discussed setting the target price and the target cost at the whole-product level. Having the price and cost for the complete product is nice, but in reality it is of little help in designing, manufacturing, and delivering a product at that target cost and price. In this chapter we will describe ways to set cost targets for the subsystems that make up the product. In most cases, products are complex enough to be made up of several distinctly different subsystems, often comprising different technologies, different design concepts and approaches, and different constraints. Also, it is often the case that different designers and engineers are responsible for different subsystems, each applying an appropriately different set of skills to their part of the problem. These individuals or subteams need specific targets so that they can properly concentrate their attentions.
