Jan 312013
 

One of my fellows in the world of product cost and design, Mike Shipulski, just posted the following:

The Middle Term Enigma

 

 

The general synopsis of it is:

  1. Firms focus more and more on the short term
  2. The “short term” is shorter and shorter.
  3. Short term leads to minimization and typically damages long term success
  4. On the other hand, the firms (especially execs) fear the long term plan as expensive and risky
  5. So why not focus on the “medium term”

Our Opinion:

Mike is right.  The short term thinking kills companies and actually wastes a lot of time and money – paradoxically.

I would offer the following addition:  Short, Medium, and Long term all have their places, but there has to a be a thoughtful and maintained plan for each. You just can’t make a plan today and then look at it in a year.  Every 2-3 months, you should be re-assessing and moving the plan accordingly.  However, you should not see whipsawing, but just gentle, organic fine tuning as you gain more information.

I also would like for Mike to define the Short, Medium, and Long term.  I realize that this changes product to product, but a general guideline would be helpful.

 

Jan 292013
 
Buying the shake weight as the solution to your bad product cost eating habits

Hiller Associates recently was the keynote speaker at aPriori’s first customer conference.  It was a great opportunity to both teach and learn from experts that came from a wide range of industries and geographies. Hiller Associates’ President, Eric Hiller, discussed several topics, of which we’ll mention two here.  The entire presentation can downloaded for FREE. Read More!

Jan 292013
 

  If you would like to download the presentation (Best Practices for Starting Your Product Cost Management Journey or Improvement)  for FREE, please fill out the form below and click the button. A link to the .pdf of the presentation will then appear below that you can click on.   AFTER you fill out the Read More!

Jan 162013
 
Where is "The DARPA Study"?!

It’s one of the most famous studies in the world of product development and probably the most famous study in the history of Product Cost Management.  It was done in the 1960’s (reportedly) by DARPA (The US Defense Advanced Research Projects Agency of the United States Government).  It’s so famous that it is typically referred Read More!

Jan 022013
 
Cost of Quality:  Defined by Equation, But Not By Graph?

I was just reading a really interesting article by Matthew Littlefield called Cost of Quality Definition.  I applaud the article for several reasons.  It is straightforward, clear, and short.  I especially like that Matthew acknowledged that Cost of Quality is not only in negative things that are avoided (warranties, recalls, scrap, etc.), but also that Read More!

Dec 182012
 
New!   Product Cost Management Survey – Participate now!!!

  Hiller Associates has teamed up with CIMdata , a global leader in Product Lifecycle Management consulting and PLM industry analyst coverage to bring you the first annual Product Cost Management Survey. It takes less than 10 minutes and you will be rewarded by receiving a free copy of the results and report of the Read More!

Dec 102012
 
Design-to-Value versus Design-to-Cost versus Minimum Viable Product

I just read an article on the site “Strategy + Business” called Building Cars by Design.  It caught my eye for two reasons.  First, the fact that a strategy site would deign to talk about engineering concepts was a pleasant surprise.  Second, the article discussed Design-to-Cost and Design-to-Value. If we strip off the automotive context, Read More!

Dec 032012
 
Should your kids go into manufacturing – CNN says... NO.

A couple of weeks ago, AJ Sweat posted his article entitled Guess What, Kids? You Don’t Really Want A Job In Manufacturing, which is AJ’s analysis of CNN’s Best Jobs in America.  His lament is obvious – apparently manufacturing was not considered in this list, or it was, and it just was not desirable.    This Read More!

Nov 052012
 
New Article by HA in Tech Clarity:  PRODUCT COST MANAGEMENT AS A LINK BETWEEN ENTERPRISE SYSTEMS

  Last week, Hiller Associates published an article in Tech-Clarity with the title: PRODUCT COST MANAGEMENT AS A LINK BETWEEN ENTERPRISE SYSTEMS Here’s an outline of the article: Siemens PLM recently bought Perfect Costing Solutions from Tsetinis & Partner.  What does this mean? To answer this, let’s first ask, what IS Product Cost Management and what Read More!

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