Bakgrund: Produktutvecklingsprocessen har på senare tid kommit att ses som en strategisk aktivitet som är avgörande för företagets överlevnad eftersom produktens utförande och kostnader till stor del fastställs innan tillverkning påbörjas. ”Target Costing” har sitt ursprung från Toyota i Japan och är en metod för strategisk kostnadsstyrning som har vuxit fram för att tidigt styra kostnader. Metoden används för att integrera kostnadsstyrning i produktutvecklingsprocessen i samstämmighet med kundkrav och företagets egna vinstkrav. Syfte: Syftet med studien är att beskriva och analysera hur ”Target Costing” används i produktutvecklingsprocessen på Volvo Construction Equipment i Braås för att ge kunskap till nya potentiella användare. Studien syftar även till att analysera ”Target Costing”-processen på Volvo CE för att identifiera utvecklingsmöjligheter. Ett bisyfte är att ge förbättringsförslag. Metodval: Data samlades in genom ostrukturerade och semi-strukturerade intervjuer, direkt observation samt dokumentation där intervjuer var den huvudsakliga informationskällan. Slutsatser: ”Target Costing” används som ett kostnadsreduceringsprogram på Volvo CE inom deras produktutvecklingsprocess i syfte att bibehålla sin konkurrenskraft och möta prispress från konkurrenter. ”Target Costing” används inte i enlighet med karaktärsdragen eftersom deras kostnadsreduceringsmål representerar kostnadsgapet och är deras utgångspunkt. / Background: The product development process has recently come to be seen as a strategic activity that is critical to its survival since the product's performance and costs are largely fixed before production begins. Target Costing originates from Toyota in Japan and is a method of strategic cost management that has emerged for the early control costs. The method is used to integrate cost management in the product development process in concert with customer requirements and the company's own profit requirements. Purpose: The study aims to describe and analyze how target costing is used in the product development process at Volvo Construction Equipment in Braås to give knowledge to new potential users. The study also aims to analyze Target Costing process at Volvo CE to identify development opportunities. A secondary purpose is to provide suggestions for improvement. Methodology: Data were collected through unstructured and semi-structured interviews, direct observation, and documentation where interviews were the main source of information. Conclusion: Target Costing is used as a cost-reduction program at Volvo CE in their product development process in order to remain competitive and meet price pressure from competitors. Target Costing is not used in accordance with the characteristics because their objectives of cost-reduction represent the cost gap and is their starting point.

企業面對全球競爭，所壓縮利潤必需降低更多成本。目標成本制重視源流管理，從新產品設計階段開始掌控成本，為有效成本管理工具。擬採用企業除期待目標成本制帶來成效外，對於可能遭遇問題亦是關注。但相關文獻十分缺乏，值得深入研究。 本研究希冀探討實施目標成本制企業所遭遇及需急迫解決問題，做為企業提早規劃防範之用。研究結果如下： 一、個案公司對問卷所列問題皆有遭遇，經因素分析後可分為七個構面。 二、共同遭遇需急迫解決問題為「目標成本的訂定及達成」及「資訊的取得及衡量」。 三、不同遭遇需急迫解決問題及其原因如下： 「內部衝突及時間管理」：導入時間較晚，組織架構仍需調整。 「上下游廠商及產品創新」：協同開發模式發展較晚，對供應商能力品質較不確定。 「技術母廠的溝通及許可」：技術母廠掌控設計造成諸多限制。 / In competitive environment, enterprises need to decrease cost to prohibit profit keeping diminish. Target Costing advances the time of cost-down evaluation to the product design and development stage. It’s an effective cost management system. Enterprises not only expect the effect after adopting but also beware of difficulties during implementation. But there are few relative researches in the world. It is worthy of closer study. The purpose of study is to explore the urgency difficulties during implementation. It can be an advice to enterprises to avoid incurring same difficulties. The conclusions of this study are: 1.Case companies suffered all the difficulties. By factor analysis, all the difficulties can be divided into seven aspects. 2.The same urgent difficulties are “setting and achieving target costs” and “acquiring and measuring information”. 3.The different urgent difficulties and the causes are: “Internal conflict and time management”: The implementation-time was not long enough; organization structure needs to be adjusted. “Value chain and produce innovation”: It was too late to make collaborative development. The qualities and capacities of supplies were uncertainty. “Communication and permission from parent manufacturing companies”: Enterprise was been constrained by lack of design right from parent manufacturing company.

Nas últimas décadas, a humanidade presenciou um grande avanço tecnológico, disponibilizando um aumento expressivo de informações aos gestores empresariais. Por isso, as organizações são impelidas a revisar suas práticas gerenciais que possibilitem sua participação no mercado a cada dia mais competitivo. Esse quadro não é diferente nas organizações hospitalares. O aproveitamento eficiente de seus recursos assume uma importância maior pelo interesse social que os hospitais desempenham em nossa sociedade. Nesse sentido, os custos dos serviços hospitalares merecem destaque, pois eles estão entre os elementos de maior importância para a análise gerencial dessas instituições. Nesse contexto, o Custeio Alvo aparece como uma importante ferramenta de auxílio aos administradores hospitalares no gerenciamento dos custos. Essa ferramenta é aplicável a qualquer organização, mas apresenta resultados mais satisfatórios, quando aplicada em ambientes em que há pressão de preços e de custos. Entretanto, poucos estudos dedicam-se a sua aplicação no setor de serviços. Nesse sentido, este trabalho dedica-se a investigação dos métodos de custeio utilizados no gerenciamento de custos em hospitais na ótica da filosofia do Custeio Alvo. O objetivo é identificar o método de custeio que proporciona mais benefícios ao gerenciamento de seus custos. No entanto, o estudo resume-se a dois métodos: o Custeio Variável e o Custeio Baseado em Atividades. A pesquisa utiliza a metodologia do estudo de caso apoiado em uma unidade hospitalar de pequeno porte, mas de alta complexidade. Utiliza também, em entrevistas semi-estruturadas com os principais administradores para identificar as características do modelo de gestão do hospital, verificar a aderência dessas características a filosofia do Custeio Alvo e identificar as variáveis dos métodos de custeio adotadas pelo hospital. Ao final, a pesquisa conclui que o modelo de gestão do hospital atende aos princípios do Custeio Alvo e que o método que mais benefícios proporciona ao gerenciamento de seus custos, considerando os princípios do Custeio Alvo, é o método do Custeio Variável. / Lately, the humankind has experienced a huge technological advance, which resulted in an expressive rising of information for managers. Consequently, it is not possible for the organizations to revise their management practices responsible for their participation in the competitive market. Such a fact does not change in hospitals. The efficient profit of their resources receives major importance by the social interest those hospitals perform in our society. This way, it is vital to highlight the cost of hospital services, as they are among the most crucial elements for their management analysis. So, the Target Costing comes as an important tool to help hospital managers administrate costs. Such a tool can be applied to any organization. Nevertheless, if applied when there is price and costs pressure, its results can be more satisfying. Therefore, there are not many researches concerning its application in the service sector. Because of that, this piece of work aims at investigating the cost methods that can be used to manage costs in hospitals, based on the Target Costing. In addition, to identify the cost method that generates more benefits to cost management. However, only two methods will be focused: the Variable Costing and the Cost Based on Activities. For this, it was used the methodology of the study of case, regarding a small but complex hospital structure. It is also used in semi-structured interviews with the main managers to identify the characteristics of the hospital management model, to verify if those characteristics adhere to the Target Costing and to identify the variables of the cost methods adopted by the hospital. In the end, it was concluded that the hospital management model attends the Target Costing principles. Furthermore, the Variable Costing is the method that generates more benefits of its costs, when considering the Target Costing.

在台灣加入WTO之後，產業將面臨國內外經營環境劇變的衝擊，在此波演變中，企業應如何自保，並更進一步提昇企業的核心能力呢？目標成本制乃提昇企業競爭力之一大利器。然而，此一競爭利器在國外已蔚為風尚之際，國內企業卻仍採觀望之態度，探究其原因，乃在國內學術界對於目標成本制之研究頗為缺乏，且國內產業界具體實施情形亦無從得知。本研究旨在探討目標成本制之關鍵成功因素為何，以期能使國內企業界對目標成本制能有更深一層的認識。 　　本論文係以探索性的方式，首先藉由相關文獻之探討，對於目標成本制關鍵成功因素變數進行初步彙整，緊接著進行個案訪談將變數加以修正完備，最後進行問卷之設計與發放，待回收後進行統計分析。 　　本研究之研究結果如下： 　　1. 就整體而言，歸納出前10名之關鍵成功因素依序為「公司有明確且一致策略目標」、「設定合理明確的目標」、「高階主管的承諾與支持」、「設計的品質管理」、「與公司產品、行銷策略相結合」、「產品開發經理的協調與整合能力」、「顧客與市場資訊的蒐集」、「因應競爭對手策略的能力」、「VE、VA的能力」、「因應產業環境變化的能力」。 　　2. 由於各產業所面臨的生存環境有所差距，所以其在施行目標成本制時，所應特別之著重之因素也略有差異。汽車業較重視「產品改善經理掌握顧客需求的能力」、「供應商品質的管理」、「供應商成本意識的提昇」、及「對目前成本結構的掌握和分析」;精密機械業較重視「產品開發經理掌握顧客需求的能力」;家電業較重視「與部門內員工溝通」、及「產品開發經理掌握顧客需求的能力」。 　　3. 由於各公司策略、企業文化、及產品特性有所不同，且所面臨之難題亦有所異。因此，不同企業在施行目標成本制時，應再考量自身之策略、產品特性、及經營課題，以歸納出適用於該企業之目標成本制關鍵成功因素。 　　4. 因素分析之結果共分為十一個因素構面，分別為:「目標分配與達成」、「供應商面」、「規劃與複核」、「顧客資訊之掌握與運用」、「因應外部變化之能力」、「策略管理及同步開發、同步工程」、「重量級產品經理之設置」、「物流、資訊流與部門內溝通」、「給予員工激勵與明確目標」、「產品經理的協調與整合能力」及「產品經理的技術能力」。 / After Taiwan enters WTO, the enterprises in Taiwan will face a rapid change of the domestic and international business management environment. In this revolutionary transformation, how can those enterprises survive and build up their core competency? Target Costing is a good tool for business to raise their competency in the midst of competition. While Target Costing has been used widely in many other countries, the enterprises in our country are still hesitating and are making no move toward this system. After we investigated the situation, we found that Taiwan's researching institutions have not carried out much research of Target Costing, and also that there is no way for people to find out what is practiced by Taiwan's industry. The purpose of the study is to explore the key success factors with the implementation of Target Costing. We hope our research will be helpful to the enterprises in Taiwan. 　　This study is done with the exploratory method. First, by researching the related literatures, we have done the initial organization of the variables of the key success factors of Target Costing. Second, we had several interviews with those managers who make this regime in practice, and then we modified the variables mentioned above. Finally, according to our work in stage one and two, we designed and collected our questionnaires, and then used multivariate analysis to analyze the cases and draw our conclusions. 　　The conclusions of this study are: 　　1. As a whole, the top ten key success factors are “the company's strategy goal is consist and clear”, “target set is reasonable and clear”, “commitment and support from top management”, “design quality management”, “the regime can combine with company's product and marketing strategy”, “negotiating and integrating capability of product development managers”, “collecting the information of customer and market”, “ capability of replying to competitor’s strategy”, “capability of VE and VA” and “capability of replying to the change of industry environment”. 　　2. Because every industry faces a different business environment, the key factors that they should focus on are different. In automobile industry “the capability of product development manager in catching customer demand”, “supply quality management”, “cost consensus improvement of supplier” and “the capability of management in understanding and analyzing the cost structure” are the most important; in precision machinery business, “the capability of product development manager in catching customer demand” has the priority and in consumer electronic industry, “communicate with staffs” and “the capability of product development manager in catching customer demand” are the most important factors. 　　3. Because different enterprises have different strategies, products, cultures and issues, they must consider their own situation when they make this regime into practice. 　　4. The result of factor analysis is divided into 11 aspects. They are “distribution and accomplish of target”, “supplier”, “plan and review”, “catching and using the information of customer”, “capability to response the outside change”, “strategy management and concurrent engineering”, “ establishment of heavy-weighted product management”, “material flow, information flow and communication between departments”, “motivating employees and giving them definite target”, “negotiating and integrating capability of product managers” and “technical capability of product management”.

<p>Sammanfattning</p><p>Datum:2008-06-15</p><p>Nivå: Magisteruppsats i företagsekonomi, 15 hp</p><p>Författare: Fredrik Barthel Emmelie Österberg</p><p>Eskilstuna Västerås</p><p>Handledare: Esbjörn Segelod</p><p>Titel: Vilka anpassningar av target costing har Ericsson Power Modules</p><p>AB valt att göra?</p><p>Problem: Den ökande globaliseringen har lett till att konkurrensen har ökat.</p><p>Detta ställer högre krav på företagen att minska kostnaderna. Då är</p><p>target costing en möjlighet att kostnadsminimera.</p><p>Syfte: Syftet med uppsatsen är att jämföra teoretisk referensram med</p><p>empiri från Ericsson Power Modules AB för att visa på hur olika</p><p>faktorer kan påverka och styr arbetet med target costing.</p><p>Metod: Metoder som används för denna uppsats är litteratursökning och</p><p>telefonintervjuer. Litteratursökningen valdes för att få den</p><p>teoretiska referensramen och sökorden för detta var target costing.</p><p>Resultat: Uppsatsförfattarna har funnit ett antal olika faktorer som påverkar</p><p>Ericsson Power Modules AB:s sätt att arbeta med target costing.</p><p>De påverkande faktorerna är produkten, komponenterna, lönerna</p><p>och konstruktionstiden. Däremot har det inte kunnat påvisas att det</p><p>skulle vara några kulturella betingelser som styr.</p>

Abstract It starts to use Value Analysis / Value Engineering (VA/VE) in USA, but it is enhanced & glorified in Japan. It¡¦s obvious that VA/VE has contributed to adding profit for the past 50 years. Not only VA/VE, Industry Engineering (IE) and Quality Control (QC) are called as the three main management technologies of business, but also VA/VE is considered an efficient instrument of reducing cost. VA/VE is introduced to Mainland China later than Taiwan, but the achievements in Mainland China are more brilliant than Taiwan. It has introduced VA/VE to Taiwan for 30 years. It is popular to be utilized in Construction Industry and the Construction Engineering of Government, but most of small and middle size enterprises are not active in introducing VA/VE. It is to be regretted. It had found most of the issued cases for VA/VE are subjected to construction engineering. There are just few cases subjected in other industries. And the related papers focus on discussing the construction industry, it is hard to find discussing in other provinces especially in target costing, purchasing, service, business process and value chain. They just existed the theories, but lacked of real issuing from VA/VE. It found the theories just emphasize the individual flow. They didn't associate with the whole value chain and lack of combining with other reducing cost methods. They often fail in popularizing VA/VE, because they can't catch the key successful factors adequately. For the above reason, the study reviews the regarded papers, and regulates the references to find the comparison of carrying out situation in the world. Then it will direct to study the application and development of VA/VE in the Taiwan transportation industry. Firstly, it will examine the achievement of pushing VA/VE in the study case of individual company. Then, it will indicate the key successful factors and the future perspectives of VA/VE action from the experience. Finally, it will provide conclusion and suggestion in the end of this study. It will supply the company in every industry a whole and systematic basis of developing VA/VE no matter what new product developed in certain or full stages. This study will show the following results: 1. You can find the theory and method of using VA/VE in transportation industry from this study especially in target costing, customer satisfaction, service, business process reengineering and value chain. If you can use VA/VE well, you will promote the effect of cost reduction. You can find VA/VE has provided a popular measurement and method in this study and make the customer value connect to competitive strategy, product design, product manufacture and supplier procedure. You can combine VA/VE with other methods, for example target costing, tear down, business process reengineering etc, to make more value of customer and less cost of manufacture. 2. This study provides a whole real company case to show VA/VE effect. It can give the other companies for reference when they want to use VA/VE. It will reduce the groping time and error risk. 3. This study provides a VA/VE management structure and a management cycle in pushing VA/VE for the transportation vehicle industry, in order to ensure that every procedure can be carried out and obtain expected effect. 4. This study has summed up 10 key successful ways and future perspectives from the case study in pushing VA/VE. It will give the other companies for reference in promoting the VA/VE effect and opportunity of success. The main purpose is what we want to remind all the Taiwan industries to concern about "Value Management" that has been a new trend of the world.

Sammanfattning Datum:2008-06-15 Nivå: Magisteruppsats i företagsekonomi, 15 hp Författare: Fredrik Barthel Emmelie Österberg Eskilstuna Västerås Handledare: Esbjörn Segelod Titel: Vilka anpassningar av target costing har Ericsson Power Modules AB valt att göra? Problem: Den ökande globaliseringen har lett till att konkurrensen har ökat. Detta ställer högre krav på företagen att minska kostnaderna. Då är target costing en möjlighet att kostnadsminimera. Syfte: Syftet med uppsatsen är att jämföra teoretisk referensram med empiri från Ericsson Power Modules AB för att visa på hur olika faktorer kan påverka och styr arbetet med target costing. Metod: Metoder som används för denna uppsats är litteratursökning och telefonintervjuer. Litteratursökningen valdes för att få den teoretiska referensramen och sökorden för detta var target costing. Resultat: Uppsatsförfattarna har funnit ett antal olika faktorer som påverkar Ericsson Power Modules AB:s sätt att arbeta med target costing. De påverkande faktorerna är produkten, komponenterna, lönerna och konstruktionstiden. Däremot har det inte kunnat påvisas att det skulle vara några kulturella betingelser som styr.

Nas últimas décadas, a humanidade presenciou um grande avanço tecnológico, disponibilizando um aumento expressivo de informações aos gestores empresariais. Por isso, as organizações são impelidas a revisar suas práticas gerenciais que possibilitem sua participação no mercado a cada dia mais competitivo. Esse quadro não é diferente nas organizações hospitalares. O aproveitamento eficiente de seus recursos assume uma importância maior pelo interesse social que os hospitais desempenham em nossa sociedade. Nesse sentido, os custos dos serviços hospitalares merecem destaque, pois eles estão entre os elementos de maior importância para a análise gerencial dessas instituições. Nesse contexto, o Custeio Alvo aparece como uma importante ferramenta de auxílio aos administradores hospitalares no gerenciamento dos custos. Essa ferramenta é aplicável a qualquer organização, mas apresenta resultados mais satisfatórios, quando aplicada em ambientes em que há pressão de preços e de custos. Entretanto, poucos estudos dedicam-se a sua aplicação no setor de serviços. Nesse sentido, este trabalho dedica-se a investigação dos métodos de custeio utilizados no gerenciamento de custos em hospitais na ótica da filosofia do Custeio Alvo. O objetivo é identificar o método de custeio que proporciona mais benefícios ao gerenciamento de seus custos. No entanto, o estudo resume-se a dois métodos: o Custeio Variável e o Custeio Baseado em Atividades. A pesquisa utiliza a metodologia do estudo de caso apoiado em uma unidade hospitalar de pequeno porte, mas de alta complexidade. Utiliza também, em entrevistas semi-estruturadas com os principais administradores para identificar as características do modelo de gestão do hospital, verificar a aderência dessas características a filosofia do Custeio Alvo e identificar as variáveis dos métodos de custeio adotadas pelo hospital. Ao final, a pesquisa conclui que o modelo de gestão do hospital atende aos princípios do Custeio Alvo e que o método que mais benefícios proporciona ao gerenciamento de seus custos, considerando os princípios do Custeio Alvo, é o método do Custeio Variável. / Lately, the humankind has experienced a huge technological advance, which resulted in an expressive rising of information for managers. Consequently, it is not possible for the organizations to revise their management practices responsible for their participation in the competitive market. Such a fact does not change in hospitals. The efficient profit of their resources receives major importance by the social interest those hospitals perform in our society. This way, it is vital to highlight the cost of hospital services, as they are among the most crucial elements for their management analysis. So, the Target Costing comes as an important tool to help hospital managers administrate costs. Such a tool can be applied to any organization. Nevertheless, if applied when there is price and costs pressure, its results can be more satisfying. Therefore, there are not many researches concerning its application in the service sector. Because of that, this piece of work aims at investigating the cost methods that can be used to manage costs in hospitals, based on the Target Costing. In addition, to identify the cost method that generates more benefits to cost management. However, only two methods will be focused: the Variable Costing and the Cost Based on Activities. For this, it was used the methodology of the study of case, regarding a small but complex hospital structure. It is also used in semi-structured interviews with the main managers to identify the characteristics of the hospital management model, to verify if those characteristics adhere to the Target Costing and to identify the variables of the cost methods adopted by the hospital. In the end, it was concluded that the hospital management model attends the Target Costing principles. Furthermore, the Variable Costing is the method that generates more benefits of its costs, when considering the Target Costing.

Orientador: Ariovaldo Denis Granja / Dissertação (mestrado) - Universidade Estadual de Campinas, Faculdade de Engenharia Civil, Arquitetura e Unbanismo / Made available in DSpace on 2018-08-11T23:57:19Z (GMT). No. of bitstreams: 1 Robert_GabrielRobertoTorrano_M.pdf: 2650430 bytes, checksum: 9d42ead1b01eae67217b8a0966df68c2 (MD5) Previous issue date: 2007 / Resumo: As metodologias de target e kaizen costing têm sido apontadas como poderosas ferramentas, adotadas pelas empresas que visam aumentar sua margem de lucro. Estudos recentes comprovam que ambas têm tido uma participação cada vez maior no sistema de negócios lean, direcionando o desenvolvimento do produto e as atividades da produção. Esta pesquisa teve como objetivo abordar a conceituação do target e kaizen costing e desenvolver uma diretriz de trabalho, a partir da aplicação do target costing como uma base de todo o sistema de gestão de custos durante a fase de projetos e do kaizen costing durante a fase de produção, analisando um caso real da aplicação dos conceitos nas obras de uma empresa do ramo varejista onde a aplicação foi executada. A idéia principal foi primeiramente projetar um produto com um custo permissível, obtido pela diferença entre o preço de mercado, ditado pela expectativa do cliente e a margem de economia desejável. Após esta etapa buscou-se a interação com os responsáveis pela produção, no intuito de se desenvolver técnicas e novas práticas que reduzissem os custos da fase de produção. Para a identificação do que é considerado valor pelo cliente, foi utilizado o SAC (serviço de atendimento ao cliente) da empresa estudada, a fim de identificar elementos construtivos que não agregassem valor para o usuário final. A eliminação destes elementos gerou uma economia que pôde ser direcionada para se atingir o target cost de um payback meta, estabelecido em função das premissas de projeto. Já a interação com a produção gerou novas economias com base em melhorias apontadas pelos funcionários contratados. As evidências desta pesquisa, ainda que obtidas num contexto específico, sugerem que as ferramentas de target e kaizen costing são viáveis para aplicação no subsetor edificações. / Abstract: The target and kaizen costing methodologies have been pointed out as a powerful strategy of lean manufacturing companies' which want to increase their profits. In fact, recent academic and corporate literatures show that both methodologies have a wider role in the lean business system, driving product development and production activities. This research aims to review the target and kaizen costing concepts and to develop a framework taking together these two matching approaches, providing a basis of a total cost-management system during the project's life cycle being the target costing on the project conception and the kaizen costing on the production phase. The main idea is to first design the project to an allowable cost consisting of the difference among target price meeting customer's expectations and the desired profit. Cost-reduction interventions should be not restricted to the design phase; they proceed to the construction phase where a continuing series of kaizen activities are needed to achieve great product performance and, at the same time, assuring value for the customer at a lower cost. These interventions saved an amount which was engaged to reach a target cost based on a payback aim, established by the project's conception. The interaction in the production phase saved another amount based on new practices suggested by the contractor's employees. This research evidences, in a specific context, that the target and kaizen application are viable on that construction sector. / Mestrado / Edificações / Mestre em Engenharia Civil

Abstract The objective of this thesis is to demonstrate a design to profit procedure and its implementation in industrial case environment. The procedure is demonstrated as a way to improve profits in a global company. The essential elements of the procedure are product business case calculations and profit consciousness of employees. This study utilizes a combination of product life cycle analysis, advanced costing methods and multidimensional data processing for the product business case calculations. The combination is necessary for solving the research task. The need of proactive design is emphasized in the telecommunications industry due to shorter and shorter product life cycles. However, traditional accounting methods do not support proactive design work sufficiently during the life cycle of the products. The design to profit procedure has been created to help business managers to solve following problems: 1. How to proactively ensure the growth of business profits in the future? 2. How to prevent suboptimal decisions from being made in functional units and to promote overall profitability? 3. How to judge the profitability of new product programs within a company? 4. How can we ensure an adequate level of cost consciousness and profitability-driven targets for the company's key employees? This study presents and discusses the construction of the procedure and describes its elements, implementation and use in practice. The argumentation is illustrated by case studies. This method has benefits, especially when the product life cycles are short and the market competition strong. The design to profit procedure is a proactive mind set or thinking pattern. This system makes the employees aware of the importance target profitability and especially target costing. There is no decision support system that could guarantee the profitability of business. Cautious utilization of the system results and common sense are required to achieve continuous growth of business profits.