Manufacturing Cost Reduction through Design Optimization

Article Written By: Marc Anderes

Manufacturing cost reduction through design optimization involves several steps to begin with. As you would expect, each step poses unique challenges to be met. Outsourcing part of the manufacturing work is one option that is often considered. Some more complex product parts are often difficult to manufacture, particularly if it means buying new equipment just to make one specific part. This by no means a new business practice, but when trying to make a manufacturing cost reduction through design optimization, one must consider the caliber 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 idea. Nonetheless, a clear quality assurance program, co-ordination of production and the resolution of any shipping issues should be the first steps in such a relationship and handled throughout any job; long-term or short-term. Over-production by the other company could lead to storage and material handling problems.

If this should occur while production is underway it could lead to your manufacturing schedule being thrown into chaos. These types of relationship involve a deep trust, and sometimes a few penalties for missing deadlines.

Designing for manufacturing (or DFM) is also a strategy that is frequently used to reach a manufacturing cost reduction through design optimization. Rather than design a product and set up the machines and production processes to best fit the design, designing for manufacturing works the other way around. When incorporating the DFM strategy, the manufacturer will take into account their current machine capabilities and design the product around what they are already capable of doing.

This will improve productivity and increase the profit margin by reducing costs that would most likely be spent on new machinary. The results of DFM are improved efficiency, an increased from design to market time and savings on research and development.

Vendors can also 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 vender will have suggestions on all possible cost cutters. While the manufacturer understands their production process better than most vendors, the vendor will surely have a better grasp on materials than many manufacturers. Even if they is unable to offer any immediate suggestions straight away, they may be able to at some point in the future.

Understanding the needs of each and every department is another good way to cut costs and optimize both productivity and quality. Nobody understands the needs of a department better than the those that work there every single day. Taking their suggestions on how to cut costs can be a smart idea. Many companies now provide a bonus to staff members that can answer the million-dollar question; how do we cut costs and increase efficiency?

The idea of manufacturing cost reduction through design optimization is to make money and reduce 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 do this.

Manufacturing cost reduction through design optimization can benefit almost any business. However, it is only justifiable if it does not reduce the quality of the product. A decrease in production quality often turns out to be more expensive than the original material was.

About the Author

Marc Anderes is the Vice President of Operations of Maloya Laser which specializes in Metal Manufacturing and Laser Cutting with advanced laser technologies.

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