Target Costing and Value Engineering

by Robin Cooper

What would happen if everyone in your company followed a disciplined approach to cost reduction? Go ahead -- imagine it. What would it look like? How can it be done?The answer -- smart cost management .Effective cost management must start at the design stage. As much as 90-95% of a product's costs are added in the design process. That is why effective cost management programs focus on design and manufacturing. The primary cost management method to control cost during design is a combination of target costing and value engineering. Target Costing Identify the cost at which your product must be manufactured at if it is to earn its profit margin at its expected target selling price. Break the target cost down to its component level and have your suppliers find ways to deliver the components they sell you at the set target prices while still making adequate returns. Value The connection to An organized effort and team based approach to analyze the functions of goods and services that the design stage, and find ways to achieve those functions in a manner that allows the firm to meet its target costs.The Added value for your company (development costs on-line with added value for your company; development costs on-line with selling prices) and added value for your customer (higher quality products that meet, possibly even exceed, customer expectations.)

Hardcover

First published May 1, 1997

About the author

Robert Popper is a multi-award winning writer, producer and performer, and best-selling author.

Robert produced Peep Show for Channel 4, winning a BAFTA for series 4 and British Comedy Awards for both series 3 and 4. With Peter Serafinowicz, Robert created, starred in and composed the music for the BBC 2 spoof science comedy, Look Around You, winning the Rose D’or for Best Comedy in 2006 plus a BAFTA nomination.

Robert has written on a number of shows, including BBC’s BAFTA-winning Harry & Paul, and The Peter Serafinowicz Show. He has also script-edited some of the country’s most exciting comedy programmes, including the multi award-winning The Inbetweeners, Graham Linehan’s EMMY award-winning IT Crowd, Peep Show series 5, 6 & 7 and Him & Her.

As a Commissioning Editor for comedy at Channel 4, Robert commissioned Bo’ Selecta!, helped develop The IT Crowd, oversaw two series of Black Books, as well as series 2 of Spaced, and ran Comedy Labs.

Under his pseudonym, Robin Cooper, he wrote The Timewaster Letters books, which have so far sold over 300,000 copies.

Robert apperared regularly on Charlie Higson & Paul Whitehouse’s Sony Award-winning Radio 4 series, Down the Line, as well as their BBC2 show, Bellamy’s People. He also appeared in Simon Pegg and Edgar Wright’s movie, Hot Fuzz, saying just three words – “I’m not Janine”, and worked in Los Angeles as a writer on Sacha Baron Cohen’s movie, Bruno.

In December 2008, Robert set up his own production company, Popper Pictures, to make comedy TV shows.

Robert and Peter created the online afterlife comedy, The Other Side (Radio Spiritworld), as well as the online world religion, Tarvuism (www.tarvu.com).

In 2010, Robert wrote on series 14 of South Park in LA. His six part comedy series, Friday Night Dinner – starring Tamsin Greig, Simon Bird, Paul Ritter, Tom Rosenthal and Mark Heap – which Robert wrote and produced – aired on Channel 4 in 2011, winning the Rose D’or for Best Sitcom and a BAFTA nomination.

A pilot of Friday Night Dinner was recently produced in the US for NBC by Greg Daniels, creator of King of The Hill, and US producer of The Office. Robert recently starred alongside Steve Coogan in Sky’s forthcoming ‘Alan Partidge on Open Books’ which goes out in July. The second series of Friday Night Dinner starts on Channel 4 on October 7th, along with a Christmas Special at – well, Christmas.