Designing_Half_Cost_Products

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SELLING PRICE BREAKDOWN  

              (Figure 6.3 in firsts of second editions of DFM book)

PROGRAMS THAT REDUCE SPECIFIC COSTS

 

HALF COST PRODUCT DEVELOPMENT 

                (Section 3.8 in second edition of DFM book)

This is the only course that will show product development teams how to design products to sell at half the selling price. Specifically, the course will show how to achieve the following cost reductions to 1/N of the previous state, followed by links to “how to” articles.

1/2 the project development budget, in 1/2 the time : See the white pape
r:
        http://www.design4manufacturability.com/concurrent-engineering.htm, which includes vendor/partnerships:
        http://www.design4manufacturability.com/vendor-partnerships.htm

1/2 the concept/architecture cost with simplified concept breakthroughs, which is important because the concept/architecture determines 60% of product cost, as shown, with two generic examples, in the next article link. Customized workshops will explore specific design project opportunities:
        http://www.design4manufacturability.com/designing_low_cost_products.htm 

1/2 the assembly, labor, and processing costs. See DFM article:
        http://www.design4manufacturability.com/DFM_article.htm

1/2 of the quality costs. See the Design in Quality article:

        http://www.design4manufacturability.com/design_for_quality.htm  and increase savings to::
1/3 of the quality cost doing Design in Quality AND Avoiding Cost reduction after Design:
        http://www.design4manufacturability.com/cost_reduction.htm 

1/3 of the Indirect labor costs (fire-fighting, change orders); See comparison timelines at:
        http://www.design4manufacturability.com/half-the-time.htm
 
1/10 of material overhead for standard parts based on surveys of Procurement managers:
        See opening page of Chapter 5: “Standardization” in the definitive book on Design for Manufacturability

1/10 of raw materials inventory cost using:
        Spontaneous Supply Chains,” Chapter 7, in the 512 page BTO book which starts with a 60 page Summary

1/10 of work-in-process (WIP) inventory* Cost, which can cost more than profits! See:
    “Design for Lean and Build-to-Order:” Chapter 4 in the author's DFM book, now translated into Chinese

1/10 of finished goods inventory* Cost using Build-to-Order: See:
        http://www.build-to-order-consulting.com/  or
        Build-to-Order & Mass Customization, the most thorough book written on Build-to-Order

 

SUMMARY OF 9 COST CATEGORIES

1/2 the project development budget

1/2 the concept/architecture cost 

1/2 the assembly, labor, and processing costs

1/2 of the quality costs

1/3 of the quality cost AND Avoiding Cost cutting

1/3 of the Indirect labor costs
 
1/10 of material overhead for standard parts 

1/10 of raw materials inventory cost 

1/10 of work-in-process (WIP) inventory* Cost

1/10 of finished goods inventory* Cost 

 

If your company or client have high overhead charges, don't let these excessive overhead charges burden your  design project.  Instead, spin it off as a "profit-and-Loss " center (see book section  .4.1.4 to get  "Skunk-Works" protection from excessive overhead charges without needing a separate facility.

 A Case Study in Appendix A.1.3 A cites a  30% price Advantage  for an  industrial equipment because their product was the only product built in ait in a "focused factory" and their more expensive copetitor still build everything they ever built!


In customized seminars and webinars, these principles are presented in the context of your company amongst designers, implementers, and managers, who can start the process of designing half-cost products.


In customized workshops, brainstorming sessions apply these methodologies to your products.

 

Would you like to  enquire further?

I am interested custom customized remote DFM* webinars or workshops on Design for Manufacturability.* 

I am interested custom remote BTO & Mass customization** webinars or workshops on "Build-to-Order & Mass Customization.** 

Pleased notify me of any future public seminars or webinars on Design for Manufacturability or* BTO &  Mass Customization**

       * To preview the principles on DFM & Concurrent Engineering, read the definitive book on the subject
      ** To preview the principles of BTO & Mass Customization, read the 510 page book with a 60 page Exec Summary

Name

Title/Position

Company/Division

Location

Phone number

e-mail address

Type of products

Web page URL of product that needs the most improvement
 

Number of different products (SKUs)


Challenges, goals, and opportunities (check all that apply)

Minimizing product cost
Minimizing  product development cost
Fastest time to stable production
Designing in the best quality and reliability right-the-first-time
Fastest build time and throughput time
Designing for Lean Production, Build-to-Order, and Mass Customization
Assured availability of parts, materials, and products
More effective product development process
Growth and ability to meet peak demand
 Other challenges, goals, and opportunities:
 

   To Submit, first enter "12" and hit "Enter" to bypass Robo Filter (required field)


Call or email about how these principles can apply to your company:

  Dr. David M. Anderson, P.E., CMC
fellow, American Society of Mechanical Engineers
www.design4manufacturability.com
phone: 1-805-924-0100
fax: 1-805-924-0200
e-mail:
anderson@build-to-order-consulting.com

copyright © 2021 by David M. Anderson

Book-length web-site on Half Cost Products has many related articles at: www.HalfCostProducts.com

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