Systems and methods for managing cost reduction projects to increase cost savings for replacement subcomponents

摘要

A technique for managing cost reduction projects which reduces costs of an assembled product is described. The assembled product includes a plurality of subcomponents. The technique includes determining a best of the best (BOB) assembled product containing least cost subcomponents and ensuring that the total cost of the BOB assembled product is less than or equal to a market based target cost of the assembled product. The market based target cost is a cost at a point in time in the future which takes into account a profit margin of the assembled product. The technique also includes receiving forecast data for the plurality of subcomponents composing the assembled product and calculating cost savings for each of the least cost components introduced into the assembled product utilizing the forecast data. Each least cost component introduced into the assembled product defines a cost reduction project. The technique also includes ordering the cost reduction projects according to their corresponding calculated cost savings.