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During this stage in a product's life cycle, workstation setups, assembly steps, and process flows are simulated and optimized on paper before expenses are incurred.* Lean Manufacturing occurs after product launch and extends beyond Daimler Chrysler to include its supply chain.

Benefits from this "hands-on" workshop include improved material flow and the elimination of unnecessary inventory movement, reduced setup times, and a general optimization of the workforce.

The following section describes some of these tools and initiatives and other characteristics of successful target costing companies.

The target costing system at Daimler Chrysler makes use of a "toolbox" of management initiatives to improve productivity and reduce costs.This is accomplished through cross-functional target costing teams, which analyze the product's design, raw material requirements, and manufacturing processes to search for cost savings opportunities.The cross-functional teams employ a variety of management tools and initiatives to help them achieve their objectives.The teams vary from five to 30 individuals and meet anywhere from one to five days.The workshops are "working" sessions where participants brainstorm, troubleshoot, and generally try to solve problems and improve operations.* Value Engineering/Analysis is used to increase the value of Daimler Chrysler's products to consumers through improved designs.