Marc Wouters

2021

This literature review is about reducing cost at the new product development (NPD) phase for the entire life cycle of a product; this is a three-way gap in the existing literatures about lifecycle-cost, target costing, and new product development performance. This paper will try to answer the question about how to reduce cost for the whole lifecycle at the NPD stage. I will start by a list of possible decisions that could influence the NPD outcome, and deduct the corresponding cost effect. Besides that, I will combine it with the lifecycle perspective and categorize the cost savings to each period of lifecycle cost. Finally, a few suggestions will be made about further variables that could influence the performance, accompanied with suggestions to verify them.
Keywords: New Product Development, Target costing, Lifecycle-cost, Cost reduction