Quality Function Deployment, Value Engineering and Target Costing, an Integrated Framework in Design Cost Management: A Mathematical Programming Approach


Department of Industrial Engineering,Tarbiat Modares University


In this paper, the need to incorporate three famous design cost management methods, called:
Quality Function Deployment (QFD), Value Engineering (VE) and Target Costing (TC) into
a single model has been addressed. Each method performs very well in cost management
procedures as design activities. These methods have been incorporated into a mathematical
programming model, in order to achieve the maximum bene t of each method. The model,
essentially, optimizes customer satisfaction subject to target cost. The tool is a mixed integer
zero-one nonlinear programming. The uni ed model has been proposed to prevent a non-optimal
solution when methods interact with each other. The practitioner should be con dent that the
quality solution would be achieved in contrast to when the methods are applied sequentially. A
simple automobile design example was formulated and solved to show the performance of the