Parameter Key Justification Index (PKJI): A Scaled Value–Cost Metric for Feature-Level Decision Making in Feature Development

Authors:

Pushkar Jangid¹

¹Manager – Development Team Leader, RNTBCI, Chennai, India.

Email: pushkar.jangid@rntbci.com

ABSTRACT

Decision making in product development often suffers from subjective prioritization, inconsistent scoring frameworks, and late‑stage financial checks that lead to cost overruns, unjustified feature additions, and weak portfolio governance. This paper introduces the Parameter Key Justification Index (PKJI), a normalized value–cost metric designed to provide transparent, quantitative, and early‑stage justification of design parameters across product‑based industries. PKJI integrates Customer Value (CV)—computed through monetized economic contribution and structured Customer Concern Weights (CCW)—with Unit Cost (UC) derived from lifecycle costing and NRE amortization at realistic production volumes. A calibrated scaling constant converts diverse CV/UC ratios into a unified 1–100 decision scale, enabling direct comparison across technologies, functions, and product categories. The framework supports both diagnostic evaluation and prescriptive budgeting using reverse algebra, allowing organizations to determine allowable cost envelopes, assess required production volumes, and identify value‑inefficient parameters before design freeze. Results show that PKJI creates clear, auditable differentiation between high‑value essential features and low‑impact additions, strengthening cost discipline, customer centricity, and strategic alignment. Overall, PKJI provides a scalable, industry‑neutral system for evidence‑based parameter justification, improving decision quality and investment efficiency in complex product development environments.

KEYWORDS

Parameter Key Justification Index; Value-Cost Analysis; Lifecycle Costing; Decision Framework; Customer Value; Engineering Economics; Product Development.