Staying Competitive in a Crunch
By Milind Dange
General competitiveness design tutorial7 easy steps to reduce costs in the product development and engineering cycle
4. Make better use of suppliers
It’s critical suppliers be part of the team at the start of a project. For example, an automotive OEM saved US$12 million a year on the cost of key fobs by listening to its parts supplier, who pointed out that the company was using seven different key fobs across nine vehicle lines. By using one basic design with slight variations, the savings were significant.
5. Listen to the people on the line
Those assembling a product may be the engineers’ most useful resource, since their input can be of value in avoiding problems. For example, while an engineer with a boat manufacturer was reviewing the assembly process, a worker pointed out the exhaust pipe didn’t quite line up with the hole in the hull because of the way the engine had to be mounted. This not only placed stress on the entire exhaust system but also required approximately 45 minutes of extra installation time. By simply specifying the hole be moved about one inch, both problems were solved. Every manufacturer can benefit from a manufacturing feedback group that includes assembly line personnel as well as others involved in production.
6. Think like a customer when it comes to features
It’s easy to forget that the task is satisfying customers, not the engineers or designers. It’s only necessary to point to the 2001 introduction of BMW’s iDrive to understand the problem. It first appeared on the BMW 7 Series, and although it was an engineering feat, customers found it complicated and frustrating. It has since been simplified and improved, but many customers still want nothing to do with it. This is a prime example of a product designed by engineers, for engineers.
7. Create and rationalize specifications
If this seems painfully obvious, then why are there so many exceptions—and costly mistakes? If, for one reason or another, a supplier happens to change specifications, how can they be held responsible if there were no approved specs?
Beyond that, manufacturers need to have specs for all their products. It’s no accident the design and specs for all BMW brakes (considered one of the most confidence-inspiring designs under driving conditions) are the same; the only difference is in the size. As well, having complete specs facilitates the bidding process and results in better pricing and product quality.
