Method of expenditure of products for its cycle of life: an applications in the publishing industry

Abstract

This article refers to the measurement and identification of costs to which a product is submitted, during every stage of its lifecycle. This method for approach and management of costs is called Product Lifecycle and Property Funding. The lifecycle of the product is comprised by different stages of funding where the costs are estimated from the initial idea to its abandonment. With the purpose of evidencing the application of such method, this article deals, through a case study, with its application to the Brazilian publishing industry, offering to it an alternative for the funding of its products (literary titles). The survey may be justified by the lack of works that present an objective conclusion on the validity of using the method, aiming at better managing and reducing the costs in the timeframe of the useful life of the product and achieving competitive advantage. It has been evidenced that the use of the method permits for a company still in the planning phase, the visualization of almost all costs that shall be incurred in the lifecycle of the title, aiming at its better management and maximization of profits for the company, when compared to the traditionally deployed method. The use of the product lifecycle funding method shows to be an important tool for the strategic management of costs as, still in the embryonic phase of the product, it permits the visualization, management and reduction of costs in all phases that the product shall pass through.