Sir can you please explain these two points. ‘Mininmise breakeven time’ And ‘Maximise the length of the life span’
Breakeven is when we first turn a loss into a profit. The sooner we can achieve this the better – so we want to minimise the breakeven time.
The life span is the life of the product – the length of time we expect we will be able to sell it. The longer we can keep selling it the better, so we want to maximise the lifespan.
Thank you sir. And what does ‘Design cost out of products’ and ‘Minimize the time to market’ mean?
Have you not watched my free lectures on this and on target costing?
Designing cost out of products is reviewing the initial design prior to starting production with a view to reducing the costs of production (without making the product less desirable for the customer).
Minimize the time to market is getting a new product ready for production (and therefore sale) as fast as possible.
Yes but i was confused with these terms. It’s all clear now. Thank you so much sir ?
Sir. 🙂 **
You are welcome 🙂 🙂
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