If a business opts to outsource some of its manufacturing to eliminate costs, one important consideration is in the product quality. If the quality of the product is sacrificed because of the cost reduction, this may not be as productive in cost savings as hoped.
Concurrent Engineering and Design for Manufacture ability
Another method of saving on costs is through concurrent engineering. This is when a product is designed simultaneously as the process of manufacturing for the development of the product. Another way is design for manufacture ability (DFM) where products are designed in a manner to optimize all of the features of the manufacturing process such as fabrication, testing, shipping, ensuring the best costs and customer satisfaction. DFM advocates products to be manufactured with the fewest number of parts and therefore less waste and cost reduction. Product design is done so that the product will be able to function with other parts and standardization is advocated.
Other Cost Saving Methods
Working with a vendor to assist in the design of a product can aid in keeping costs low. They can assist in averting making decisions such as producing a product unnecessarily fancier for aesthetic purposes. Vendors will understand the issues that face manufacturers and can help in offering solutions. This additionally imparts a learning situation so that the manufacturer and vendor learn how to produce the jobs faster and better each time.
Input has to be garnered from staff in every department of the company in order to cut costs. Talking to people who actually do the work on the floor can yield ideas on how to make improvements to save money.
Understanding all issues that have happened in the past and learning from them so that they will not be repeated in the future is important. Make sure designs are as straightforward as they can be so the assembly, processing and fabrication are simple. Any problems in assembly, fabrication and processing can result in enormous costs to repair. Follow procedures for processes of design. For example, there are certain guidelines for use of a laser cutter so follow them to the letter each time the laser cutter is used. Do not design for right- and left-hand parts but produce a product that can be used either way so as not to result in a huge amount of stock. Have a symmetrical product so it is easy to assemble and avoids unnecessary complexity. Always produce a quality item. It is less expensive to do it right the first time than to fix it later on.