The use of strategic cost management to understand the real cost of part numbers.

Abstract Date: 9th June 2025 Level: Master Thesis in Product- and Process development, advanced level, 30 ECTS Institution: Mälardalen University, School of Innovation, Design and Engineering. Authors: Tarik Dobrev Melissa Kride 13th of July 2001 1th of July 2001 Title: The use of strategic cost management to understand the real cost of part numbers. Keywords: Strategic cost management, Cost drivers, Value chain analysis, Activity based costing. Purpose: The purpose of the study is to investigate how strategic cost management can be used to analyze real costs for part numbers (PN) within a product throughout the lifecycle. Research questions: RQ1: What are the cost drivers of part numbers during the different phases of its life cycle? RQ2: How can strategic cost management help in analyzing different cost drivers of part numbers within its life cycle? Method: The method of this study is a deductive approach with a deductive content analysis. Furthermore, the study is a single case study that consists of both quantitative and qualitative data, which are collected through semi- and unstructured interviews from various respondents. The study included the research of scientific resources in order to create the theoretical framework with relevant theories. Conclusion: In conclusion, strategic cost management can be used in order to identify and quantify different cost drivers such as administrative costs, time pressure and development costs, which is possible by the different pillars of SCM: Value chain analysis, strategic positioning and cost driver analysis such as the ABC-method.