Research-based Collaborative Product Development, Strategic Cost Management

It was the perpetual topic to all of companies that how to manage the cost of product effectively by which about 70—80% percents product's whole lifecycle cost (WLC) is decided when the design program of new product is completed. So all measures of product cost management must start at the beginning of design stage. The development of the theory and methods of strategic cost management (SCM) and the progress of methodology and technology of product design provide the strong supports to the SCM application process that based on the headstream of time and space of product cost management which consist in the phase of product development.This paper applies the theory and methods of SCM to the product development stage for the first time. Under the guidance of SCM thought, a collaborative design platform integrated the technology and information is established and a SCM method system and applicative model oriented to the product WLC is built by using the modern modes of cost management including the Target Cost/Cost Design (TC/CD) and Activity-Based cost management (ABCM) and by applying the production of technology of concurrent development and virtual design. By solving the problem of flow configuration and method integrating of them in the process which combines SCM and collaborative development, the applicational model has great value of application for the company further development.