Value for money is a concept each of us readily understands. We apply it in our daily lives to the things we purchase i.e. if we do not think something is good value we probably won’t purchase it. Value and sales potential are closely related. Managers responsible for product development project may think they are keeping costs firmly in mind, but how can they be sure that better value designs cannot be created?

“ Prices aren’t set by costs, they’re set by the competitors”.

Every person involved in the business understands this well but surprisingly; this simple truth is not always recognized by those who have the ultimate responsibility for the costs incurred in making a product. Designers may feel that their responsibilities ends with achieving the specific performance and appearance; production engineers may know what the production costs are but they are not involved in the selling of the product as that is the matter of the marketing department.
Industry today is has a project-based approach to the development of new products so that we can see whole picture of the project in terms of both the cost and the prices and hence influence the design and cost of the product that eventually emerges.