Automotive & Mobility

Target-Costing with Respect to a Passenger-Car Class Under Development


Systematically reducing the cost of applicable materials in order to meet the currently unmet top-down objective prior to the development of the product-requirements document

Problem-Solving Approach

Deriving target costs in a bottom-up approach and assessing the customer benefit for single applicable-material items:

Comparing the bottom-up with the top-down target costs for all applicable-material items of the entire vehicle (‘matching’):

Defining specific paths for meeting the target costs for all single bought-in applicable-material items:


Ambitious target costs for all single bought-in applicable-material items calculated and documented in a standardized way


Contribution of the various applicable-material items to the overall customer benefit with respect to the target positioning of the vehicle assessed and considered


Gap between expected and targeted costs completely closed and alignment of the target-cost structure for all applicable-material items achieved


Work plan with specific measures for achieving the target costs for prioritized applicable-material items developed