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4 Product Specifications
4 Product Specifications
Product Specifications
1
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Outline
• Nature of specifications
• Spec vs. specs.
• Target vs. final specs.
• Process for setting target specs
• Process for setting final specs
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Nature of Specifications
• The reference point for functionality
design and quality planning
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3
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5
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Benchmark on Metrics
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relative engineering
importance metrics
customer benchmarking
needs on needs
relationships between
customer needs and
engineering metrics
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Profit margin
Where:
M: profit margin
P: price
C: cost
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Target Cost
Where:
C = target cost
P = price to the end user
Mi = the margin at the ith stage.
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Mark up
Markup = P/C - 1
Where:
P: price
C: cost
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