Manufacturing Cost Reduction through Design Optimization: Beginning
Manufacturing cost reduction through design optimization deals with a few key steps to begin with and each step poses different challenges to be faced.
Subcontracting some of the manufacturing process out is an alternative that is worth considering. Some more complex parts for a product are often expensive to produce on site, as well as buy specialized machinery to produce one specific part. Outsourcing work is not a new business practice by any stretch of the imagination, but when trying to achieve a manufacturing cost reduction through design optimization, you must consider the caliber of the output by an outsourcing company. If the company can be trusted and the schedule can be met, then it is worth considering. Nevertheless, a clear quality assurance program, coordination of production and the resolution of any shipping issues must be the first steps in such a relationship and addressed throughout the duration of the job. Over-production by the other company can lead to storage and material handling problems. If this were to occur while production is underway it could lead to your manufacturing schedule being thrown into chaos. Business relationships such as these can be risky and involve a deep trust, and sometimes some penalties for missing deadlines.
Designing for manufacturing is also a strategy sometimes used by manufacturing businesses to accomplish a manufacturing cost reduction through design optimization. Instead of designing a product and orienting the machines and production processes to best accommodate the product, DFM works the other way around. When using DFM, the manufacturer will consider their current machine capabilities and design the product in a such a way that it can be easily manufactured. This will improve productivity and increase the profit margin by reducing overheads such as retooling the entire work floor. The results of DFM are a quicker from design to market time, greater production efficiency and less money spent at the research and development stage.
Marketers can also play an important part in manufacturing cost reduction through design optimization. With new and improved material production and shipping techniques invariably being a source of overhead, a good vendor should have several cost cutting suggestions. Although the manufacturer will always know their process better than most vendors, the vendor no doubt has a better understanding of materials than most manufacturers. Even if he or she is unable to give any immediate suggestions or offer anything useful straight away, they may in the future.
Getting to grips with the requirements of each department is another good way to cut cost and increase productivity as well as quality. Nobody knows a job more than those who do it each and every day. Hearing their suggestions on how to cut costs without limiting quality can be an excellent idea. Some businesses now offer a bonus to workers who can solve the problem of how to reduce costs and increase productivity.
The whole point of manufacturing cost reduction through design optimization is to make money by reducing overheads. Reducing the costs of material, Simplifying the manufacturing process and streamlining the manufacturing process to make it is as efficient as it possibly can be are the best ways to achieve this aim. Manufacturing cost reduction through design optimization would benefit any business. However, it can only be justified when it does not adversely affect the quality of the product. A decrease in production quality could turn out to be more costly than the money being saved.
Marc Anderes is a co-founder of Maloya Laser which specializes in <A href=”http://www.MaloyaLaser.com”>Laser Cutting</a> and Metal Manufacturing with advanced <A href=”http://www.maloyalaser.com/capabilities_equipment.php”>laser technologies</a>, servicing machinery, aerospace, medical, scientific and transportation requirements.
