Gartner Research

Automotive and Heavy Equipment Makers Must Embrace a 'Should-Cost' Approach to Improve Product Margins

Published: 19 July 2013

ID: G00247150

Analyst(s): Richard Adams, Vikas Sarangdhar


Product cost management is back in focus, as auto and heavy equipment makers strive to regain healthy margins. Gartner provides insights on how industry leaders leverage a should-cost approach to proactively manage their product costs.

Table Of Contents
  • Key Challenges



  • Practice Should-Cost Analysis in All Three Product Stages
    • Concept Stage
    • Detailed Engineering and Development Stage
    • Commercial Production Stage
    • Recommended Actions
  • Collaborate Across Functions and Suppliers
    • Recommended Actions
  • Prioritize Parts and Select the Right Approach While Deploying Should-Costing
    • Recommended Actions
  • Use Technology Solutions to Manage Complexity and Diversity
    • Recommended Actions

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