Designing for cost In an aerospace company
Name
891395532-MIT.pdf
Description
Full printable version
Size
9.37 MB
Format
Adobe PDF
Checksum (MD5)
6dea6a9b597582b44b6a45468cee1c2c
Author(s)
Hammar, Elizabeth (Elizabeth Deming)
Advisor(s)
Brian L. Wardle and Roy Welsch.
Date Issued
2014
Publisher
Massachusetts Institute of Technology
Abstract
Companies take different approaches, and achieve different degrees of implementation, in designing products for cost. This thesis discusses Target Costing and its application at The Boeing Company. Target Costing is a design for cost framework that is widely used by auto manufacturers, but is still less widely used in the aerospace industry. This thesis observes the current state at The Boeing Company and provides recommendations for full implementation of Target Costing. Through research into best practices at companies that have implemented Target Costing, this thesis identifies five key enablers: culture, organizations involved, process, tools, and market. Additionally, this thesis discusses a potential barrier to implementation: organizational politics. Based on a project to implement a price visibility tool and on three value engineering case studies, this thesis identifies The Boeing Company's state relative to full scale Target Costing and provides recommendations for The Boeing Company to achieve full implementation of Target Costing through the use of the five key enablers.
Description
Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, 2014. In conjunction with the Leaders for Global Operations Program at MIT.
Thesis: S.M., Massachusetts Institute of Technology, Department of Aeronautics and Astronautics, 2014. In conjunction with the Leaders for Global Operations Program at MIT.
38
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 69-72).
Subjects
Sloan School of Management.
Aeronautics and Astronautics.
Leaders for Global Operations Program.
MIT Department
Leaders for Global Operations Program at MIT
Massachusetts Institute of Technology. Department of Aeronautics and Astronautics
Sloan School of Management
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