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Product Development and the Supply Chain
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EDSGetting Ahead of the
Cost Commitment Curve
With Your Supply Chain

Mark Sampson, Early Product Development Evangelist, EDS, PLM Solutions

Gartner, Aberdeen, and other analysts have been passing around a disturbing curve for a number of years now…

EDS-CostCurve.gif (7031 bytes)…which talks to the issue of cost commitment versus cost realization. To put it another way, the cost commitment curve says that 90% of the costs of a project are fixed by the time we hit development, but only 10% of the costs have been expended.

If this curve is true, there is not much leverage to be gained where we apply all the automated development and manufacturing techniques (and where we have spent all our money). This curve says all the real leverage is out in the early stages of product development--which has been largely ignored by development organizations and their supply chains.

Mark’s presentation will lead to an interactive discussion regarding what goes on in early product development and how to get whole enterprises (including your supply chains) involved in taking advantage of this early product development leverage.

Mark Sampson is the EDS PLM Solutions' Early Product Management Evangelist and has been involved with defining and creating tools aimed at supporting these early stages of product development for the last 18 years.

Supporting Organizations:
Publication Sponsor:
Sloan Management Review

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