Abstract

It is becoming increasingly difficult to ignore that cost reduction in product system are not supporting the development of innovation. This contradiction becomes a great challenge for any type of industry, to improve the competitive level. In this research, the focuses on the mechanism of cost reduction using Design to Cost (DTC) strategy in achieving cost improvement and innovation. The contradiction is solved using Theory of Inventive Problem Solving (TRIZ) that is integrated into Design To Cost Innovation framework. There are two type of cases introduce in this research that highlight the application and the outcome of TRIZ in Design to Cost framework. From the case studies, the results show that the magnitude of cost improvement and innovation achieved is more than the application of conventional tools in Design to Cost strategy. These change the limitation of mindset in cost reduction without compromise or trade-off, and open up new possibility of research for cost reduction in processes and services for various.

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