Design To Cost

NameDesign To Cost
AbbreviationDTC
Learning Cost120
Playing Cost200
Suggested Phases2,3
Engineers
Mechanical Engineer Industrial Design System Engineer Electrical Engineer Production Engineer Software Engineer
Technique and Issue Views
BusinessNeeds Stakeholder Stakeholder Needs System Requirements System Structure Architecture
System Functional Architecture Detail Hardware Design Detail Service Design Detail Software Design Manufacturing Operations
Technique Traits
Identify Stakeholders Elicit Needs Remove Ambiguity Layman's Terms Technical Terms Teamworkings
1 2 2 0 4 1
Traceability Prioritizing Exploring Breadth Inside the Box Outside the box V&V
3 4 2 1 1 3
Verification and Validation
Analysis Calculus Inspection Demonstration Test

In the year 1971, design to cost (DTC) was defined by the Department of Defense (DOD) of the United States. This technique became mandatory for army contracts over 10 million dollars, so that high costs in the army could be eliminated. The main objective of this design method is to converge on costs rather than design, even in the early stages of the project [1]. Its fundamental idea is that the cost is “designed” into the product in the early stages of development, and one those are over it becomes embedded in the design, making it hard or impossible to lower the cost later on. By taking the right design decisions as early as during the initiation and concept phase of the product life-cycle, unnecessary costs at later stages can be avoided. [2] By taking into account concerns such as material specification, packaging, shipping, logistics, manufacturability and labor, the designer can impact the final cost by up to 70%. [3]