subject: Manufacturing Cost Reduction Through Design Optimization: Beginning [print this page] Manufacturing cost reduction through design optimization deals with a few steps in the beginning. Of course, each step poses unique challenges to be met.
Subcontracting part of the manufacturing work out is an alternative that is often considered. Some product parts might be expensive to produce, particularly if it means buy specialized machinery specifically to make one specific part. Outsourcing work by no means a new idea, but when trying to create a manufacturing cost reduction through design optimization, it is important to consider the quality of the output by an outsourcing company. If you are certain you can trust the company and they can meet the schedule, then it is most likely is a good match. Nevertheless, co-ordination, shipping and a clear quality assurance program must be the first steps in such a relationship and handled throughout the job. Over-production by the other party is a common concern and could cause material handling and storage issues. If this should occur during production it could lead to your manufacturing timetable being thrown into chaos. These relationships can be risky and involve a deep trust, and sometimes a few penalties for missed deadlines.
Designing for manufacturing is another strategy that is sometimes used by manufacturers to achieve a manufacturing cost reduction through design optimization. Rather than design a product and set up the machines and production processes to better accommodate the product, DFM works the opposite way around. When using DFM, the manufacturer will take into consideration their current machine set-up and design the product around what they are already capable of doing. This will improve productivity and increase profit while reducing costs that would most likely go towards retooling the entire work floor. The results of designing for manufacturing include improved efficiency, an improved from design to market time and savings on research and development.
Vendors can also play an important role in manufacturing cost reduction through design optimization. With new and improved material production and shipping techniques always being a source of overhead, a good vender should have suggestions on all possible cost cutters. While the manufacturer knows their production methods better than any vendor, the vendor will no doubt have a better grasp on materials. Even if he or she is unable to give any useful advice right off, they might in the near future.
Understanding the manufacturing demands of each and every department is another way to cut down on costs and improve productivity as well as quality. No one knows the needs of a department better than the people that work there each and every day. Taking their advice on how to cut costs is a good idea. Many companies provide an incentive to workers who can resolve the problem of how to reduce costs and boost efficiency.
The whole point of manufacturing cost reduction through design optimization is to save money and reduce overheads. Keeping the manufacturing process simple, reducing the costs of materials and optimizing the manufacturing process to ensure that it the most efficient it can possibly be are the best ways to do this goal. Manufacturing cost reduction through design optimization can benefit any company. However, it is only viable when the quality of the product remains the same as before or is improved. A reduction in production quality often turns out to be more costly than the money being saved.
