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Manufacturing Cost Reduction through Design Optimization: Beginning

Manufacturing Cost Reduction through Design Optimization: Beginning

Manufacturing cost reduction through design optimization addresses a few steps to begin with, each step creates unique challenges to be met.

Subcontracting part of the manufacturing process out is an option that is worth considering. Specialized parts for a product can be costly to produce onsite, as well as having to upgrade equipment to make specialized parts. Outsourcing by no means a new business practice, but when attempting to create a manufacturing cost reduction through design optimization, one must consider the caliber of the work you hope to receive from an outsourcing company. If you are sure you can trust them and the schedule can be met, then it is worth considering. Nonetheless, a clear quality assurance program, co-ordination of production and the resolution of any shipping issues should be the first steps before any contracts are made and dealt with throughout the duration of the job. Over production by the other company is a common concern and can cause material handling and storage problems. If this were to occur during production it could cause your manufacturing timetable to be thrown into chaos. Business relationships like these can be risky and involve a deep trust, and maybe serious penalties for missing deadlines.

Designing for manufacturing is also a strategy that is often used to achieve a manufacturing cost reduction through design optimization. Rather than design a product and set up the machinery and production processes to better accommodate the product, DFM works the other way around. When incorporating DFM, the designer will take into account the manufacturers’ current machine capabilities and design the product accordingly. This will improve productivity and increase the profit margin by lowering overheads such as new machinary. The results of DFM include savings on research and development, improved efficiency and an increased from design to market time.

Venders too can play a big role in bringing about manufacturing cost reduction through design optimization. With innovative new material production and shipping techniques forever being a source of overhead, a good vendor should have cost cutting suggestions. Although the manufacturer will always know their production methods better than any vendor, the vendor no doubt has a better understanding of materials than many manufacturers. Even if he/she is unable to provide any useful suggestions straight off, they might in the future.

Getting to grips with the manufacturing demands of each and every department is another way to reduce cost and increase productivity as well as quality. Nobody knows the needs of a department more than the people that work there on a daily basis. Taking their advice on how costs can be cut is an excellent idea. Many businesses provide a bonus to workers that are able to resolve the problem of how to cut costs and boost productivity.

The point of manufacturing cost reduction through design optimization is to save money by reducing the overhead. Reducing the costs of material, Simplifying the manufacturing process and making the manufacturing process more economical are the best ways to achieve this goal. Manufacturing cost reduction through design optimization will benefit any company. But only when it does not adversely affect the quality of the product. A reduction in product quality often turns out to be more costly than the original material was.

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