Fast and valid cost forecasts make it easier to keep track of target costs and ensure that the decisions taken are also followed in series production.
Driving forward projects in an agile development organisation requires extremely good cost discipline, which applies to both project costs and product costs. The agile approach involves making adjustments as you go along in order to reach the goal of the project. Transparent cost management and accurate process analyses are the only way to control the ensuing spiral of costs.
The decisions taken in this phase are responsible for a significant share of the product costs incurred later on. A cost analysis in the development phase can help to maintain focus on the structure of the product costs, in addition to the technical and design-related requirements, without hampering the agile development.
One specific process module in product management deserves our particular attention – change management. Changes to components in the project phase are often very costly if the future manufacturer is involved in the development. As a quasi-monopolist he is often in a position to dictate the costs for any changes to the goods he supplies, maximising the profitability on his products.