Muthanna Journal of Administrative and Economic Sciences

Abstract

The study aims to demonstrate the knowledge pillars of some of the strategic cost management methods, namely, the comprehensive cost of a product's life cycle, value engineering and continuous improvement, and to clarify the importance of the comprehensive cost of a product's life cycle in reducing the cost of the product life cycle through the application of value engineering and continuous improvement. To achieve the objective of the study, an applied study was conducted on the 120 litre Babylon electric heater product produced by the State Company for Electrical and Electronic Industries. The comprehensive cost of a product's life cycle was applied to calculate the cost of the heater life cycle. Value engineering and continuous improvement were also used to reduce the cost of the product. The study found that the application of the comprehensive cost approach to the life cycle of the heater product managed and reduced the cost throughout the life cycle of the product and up to the target cost through the application of value engineering in the pre-production phase. It has reduced the cost of the heater by analyzing the functions of the product and determining the utilization of those functions from each of its components to reach the target cost of each function, and the amount of reduction in the cost of the heater's functions while maintaining the efficiency of its performance and achieving the company's objectives and customer's wishes and requirements. The application of continuous improvement in the production and post-production phases has reduced the costs of the production phase by changing some production methods. The study recommends the importance of keeping industrial units from applying the comprehensive cost of a product's life cycle and using value engineering and continuous improvement, for their significant role in managing and reducing the cost during the product life cycle stages.

Iraq is considered as one of the oil-rich Arab countries. This helped to achieve economic and social stability that
was reflected positively on the well-being and happiness of individuals. However, due to the devastating effects
of the war, Iraq's institutions and its social and economic outcomes became very similar to those of low-income
fragile countries.
The importance of this study comes in light of the low level of international trade across borders in Iraq, despite
its economic and social potential and population groupings that can be invested in creating a major economic
development for Iraq and an integrated regional development. Promoting cross-border trade has become an urgent
need and a basic pillar for Iraq to get out of the cycle of stagnation and weak growth Economic.
This study also clarifies the reasons that have made Iraq unable to achieve the development of this trade as it
reflects the commercial face of Iraq and its foreign relations with neighboring countries and the world.