Developing Cost Sensitive Products

1
Developing Cost Sensitive Products

• R. A. McKenzie
• Calvin Gamble Jr.

2
Cost Influencing Factors

• Selection
• Materials
• Components
• Features
• Options
• Sub-assemblies
• Design

3
Additional Cost cutting

• Team with Suppliers
• Develop High Volume Products

4
Product Cost Factors

• Annual Part Cost
• Sub-assembly Cost
• Option Cost
• Assembly Time
• Test and Repair Cost
• Inspection Cost
• Shipment Cost
• Option Installation Cost
• Warranty Cost

5
Design for Manufacturing

• Design Analysis
• Process Analysis and Flow
• Concept and Cost Review
• Design for Assembly Approach
• Design Rules
• Technology Analysis Tolerance
• Producibility

6
10 Tip for Minimizing Cost

• Minimize the number of parts
• Minimize the number of steps
• Use common parts within the product
• Simplify assembly and serviceability
• Maximize the designing of non-value added
  operations.
• Design low cost overhead opportunities
• Design to minimize life cycle test cost

7
10 Tip for Minimizing Cost

• Minimize tight tolerances
• Integrate team concepts designs into the
  organization
• Bring vendors into the development process as
  early as possible

8
References

• Strategies/Concurrent Engineering
• Concurrent engineering is a business strategy
  which replaces the traditional ... Therefore,
  concurrent engineering has emerged as way of
  bringing rapid ...
• best.me.berkeley.edu/pps/pps/concurrent.html
• Concurrent Engineering Solutions
• Concurrent Engineering Solutions(CES) is the
  integration of product design and process
  planning into ... Concurrent Solutions provides
  complete range of ...
• www.concurrentgroup.com - 16k -
• The Relevance of Concurrent Engineering in
  Industrial Technology Programs
• (PDF)
• Concurrent engineering has become. a common
  phrase heard on factory ... provide a perspective
  of concurrent. engineering from an industry
  point-of ...
• www.nait.org/jit/Articles/bala050100.pdf - 265
• What every engineer should know about concurrent
  engineering
• Thomas A. Salomone