Review of Cost Estimation Techniques and Their Strategic Importance in the New Product Development Process of Textile Products

Abstract

Today, the strategy of innovation is perhaps the most pervasive strategy for textile companies to achieve a competitive advantage while facing severe competition in the global textile market. To be successful a company must bring new products to the market which can completely satisfy customers' expectations, as well as the company's desire to increase its profitability. Because product price is an important decisive factor which influences customers' purchase behavior, and it is generally established independently as a result of pure competition, the only way to get a higher profit margin is to reduce product costs. The product costs are committed as the product goes through new product development stages and it is therefore critical for the company to manage costs in every phase of this process. The main focus of this paper is to review current cost techniques and methods which can be successfully applied during the development of new textile products. This work builds a foundation for future research in the field of cost engineering of textile products and can be used by company's executives to become familiar with current cost estimating tools.

Citation

Ievtushenko, O. and Hodge, G.L. (2012), "Review of Cost Estimation Techniques and Their Strategic Importance in the New Product Development Process of Textile Products", Research Journal of Textile and Apparel, Vol. 16 No. 1, pp. 103-124. https://doi.org/10.1108/RJTA-16-01-2012-B012