Manufacturing Cost Reduction through Design Optimization: Beginning
Manufacturing cost reduction through design optimization covers several steps in the beginning. Of course, each one has its own different challenges to be faced.
Outsourcing some of the manufacturing process is an option that is worth considering. Specialized product parts might be costly to produce, especially if it means buy specialized equipment to make one specific part. Outsourcing work is not a new business practice by any means, but when trying to create a manufacturing cost reduction through design optimization, you must determine the caliber of the output by an outsourcing company. If you are sure you can trust the company and they can meet the schedule, then this is most likely is a good match. Nevertheless, shipping, co-ordination on production and a clear quality assurance program must be the first steps before any contracts are signed and dealt with throughout the job. Over production by the contracted producer is a common problem and could cause storage and material handling issues. If this should occur while production is underway it could cause an upset manufacturing schedule. Business relationships like these are fraught with danger and involve a deep trust, and sometimes a few penalties for missing deadlines.
Designing for manufacturing (or DFM) is a second strategy frequently used by manufacturers to reach a manufacturing cost reduction through design optimization. Rather than designing a product and orienting the machinery and production processes to best accommodate the product, DFM works nearly in the opposite way. When using DFM practices, the manufacturer will take into consideration their current machine set-up and design the product in a such a way that it can be easily manufactured. This will improve productivity and increase profit while lowering overheads that would probably be spent on new machinery. The results of DFM are improved efficiency, savings on research and development and an improved from drawing board to market time.
Marketers too can play an important part in manufacturing cost reduction through design optimization. With new methods of material production and shipping forever being a source of overhead, a good vender will have suggestions on all possible cost cutters. While the manufacturer will know their production methods better than most vendors, the vendor no doubt has a better understanding of materials. Even if they cannot give any useful suggestions straight off, they might in the future.
Understanding the demands of each and every department is a major way to cut down on costs and increase productivity as well as quality. No one knows a job more than the people who do it every day. Hearing their advice on how to reduce costs without limiting quality is often a smart idea. Some organizations now offer an incentive to workers who can resolve the problem of how to save money without hindering efficiency.
The purpose of manufacturing cost reduction through design optimization is to make money by reducing the overhead. Keeping the manufacturing process simple, reducing the costs of material and increasing the efficiency of the manufacturing process are the best ways to achieve this objective. Manufacturing cost reduction through design optimization is definitely a good business practice. But only if it does not adversely affect the quality of the product. A decrease in production quality might turn out to be more costly than the original material was.
Marc Anderes is a co-founder of Maloya Laser that is dedicated to Metal Manufacturing and <A href=”http://www.MaloyaLaser.com”>Laser Cutting</a> with state-of-the-art <A href=”http://www.maloyalaser.com/capabilities_equipment.php”>laser systems</a>, servicing machinery, aerospace, medical, scientific and transportation requirements.