Design to cost to reduce costs

Abstract

Design-to-Cost (DTC) is a strategic approach to industrial cost management, focusing on controlling product costs from the early design stages, rather than addressing them post-production. This methodology relies on setting a target cost and designing the product within this range to achieve a balance between quality, cost, and performance. Studies have shown that approximately 60%-80% of a product's cost is determined during the design phase, giving DTC a critical role in reducing costs and enhancing operational efficiency. The importance of this approach lies in its ability to integrate design, engineering, accounting, and marketing teams to make strategic decisions based on accurate financial data. In the Iraqi industrial environment, the results of an industrial reality analysis show that adopting DTC is an urgent necessity to address rising costs and obsolete production methods. With its gradual implementation and in parallel with the development of human resources and infrastructure, DTC can achieve a qualitative transformation in Iraqi industries with regard to cost and quality, enhancing their competitiveness in the market.