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Developing Half-Cost Products

Location: Your office

Date: Wednesday, June 24, 2009

Time: 1:00pm - 2:30pm ET

Overview

All companies that manufacture products are under pressure to lower costs, either to raise profits or to compete better with lower prices.

However, most “cost reduction” efforts just don’t work or, worse, can generate more costs in other areas like quality, compromised functionality, time to market delays, and product delivery vulnerabilities. Further, the effort to try to the reduce cost after design wastes resources that, instead, could be better utilized designing truly low cost new products.

In this 90-minute live Audio/Video presentation, Dr. David M. Anderson, author of the 2008 book, Design for Manufacturability & Concurrent Engineering, will show how to develop products that support his eight strategies* for half-cost products.

The presentation will address the three worst ways to try to reduce cost: offshoring, which thwarts six of the eight Half-Cost strategies; low-bidding on custom parts, which prevents benefiting from vendor-partners, who will help teams to concurrently design parts and their tooling; and cost reduction after design, when most cost is locked in and so much is cast in concrete that significant cost reduction at the system (product) level is impossible.

Dr. Anderson will show that 80% of a product’s cost is committed in the design and 60% is committed in the concept/architecture phase, which is where the most cost reduction opportunities are. But ironically, most product development teams are pressured to rush through this phase to start designing parts and writing code for the appearance of “early progress.”

Of course, if “cost” is important, then it must be defined well -- by quantifying total cost. The Half-Cost Products approach focuses on minimizing all the categories of total cost, including development costs, which should include the costs of all firefighting and change orders.

The session will discuss the keys to developing half-cost products, including:

  • Multifunctional concurrent engineering teams with all specialties present and active early
  • Learning lessons from the past to avoid costly change orders, firefighting, and fixes that delay the real time-to-market (stable production)
  • Raising and resolving issues early to the avoid the significant expense and delays of trying to resolve them later
  • Up-front effort commensurate with the 60% of the cost that is committed up-front with concept simplification and breakthrough ideas
  • Being good enough at product development to quickly commercialize breakthrough ideas
  • Optimizing product architecture, which is part of the 60% of the cost committed up-front
  • Concurrently designing products and manufacturing processes, tooling, and fixtures
  • Designing for manufacturability to minimize fabrication and assembly costs
  • Eliminating the need for skill, judgement, and calibration in the factory
  • Reducing the cost of quality by designing in reliability and quality at the outset

Participants will also have the opportunity to ask questions and receive feedback on specific challenges.

* The eight Half-Cost strategies are presented at www.HalfCostProducts.com with links to many articles.

Takeaways:

1. Access to slides used during the session via webinar technology
2. Your questions answered directly by an expert during the session
3. Follow-up email with presentation text and graphics in PDF format.

 

Session Leaders

Dr. David M. Anderson, P.E., CMC, ASME Fellow
Management Consultant
Design4Manufacturability.com
Email: anderson@build-to-order-consulting.com Phone: 1-805-924-0100

For the last 25 years, Dr. Anderson has been teaching advanced product development techniques to leading manufacturing companies. He “wrote the book” on Design for Manufacturability, literally and figuratively. His book, Design for Manufacturability & Concurrent Engineering (2008, 448 pages) is the definitive work on DFM. He wrote his first book on DFM in 1990 and has had a version in print ever since. His book-length site, www.HalfCostProducts.com, presents eight strategies to cut total cost in half with better quality and functionality in half the usual development time.

He also wrote the book, Build-to-Order & Mass Customization, The Ultimate Supply Chain Management and Lean Manufacturing Strategy for Low-Cost On-Demand Production without Forecasts or Inventory, (2008, 512 pages) which shows how to build standard products on-demand and mass-customize specials.

Dr. Anderson has more than 35 years of industrial experience in design and manufacturing. For seven years, his own company, Anderson Automation, Inc., built special production equipment and tooling. As the ultimate concurrent engineering experience, he personally built his designs on his own milling machine. He has been issued four patents and is working on more.

Dr. Anderson is a Fellow of ASME (American Society of Mechanical Engineers) and has been certified for 10 years as a Certified Management Consultant (CMC) by the Institute of Management Consultants. His credentials include professional registrations in Mechanical, Industrial, and Manufacturing Engineering and a Doctorate in Mechanical Engineering from the University of California, Berkeley, where, in 1993, he created and twice taught the New Product Development class in the Management of Technology Program.

What you will learn

 In a 90-minute live audio/video presentation, cost expert Dr. David M. Anderson will show:

• How product development can support his eight strategies for half-cost products
• How not to reduce cost, and how to avoid mistakes and counterproductive attempts
• How to develop products to minimize all elements of total cost

This session will present a summary of how to do develop half-cost products, including:

  • Multifunctional concurrent engineering teams with all specialties present and active early
  • Learning lessons from the past to avoid costly change orders, firefighting, and fixes that delay the real time-to-market (stable production)
  • Raising and resolving issues early to the avoid the significant expense and delays of trying to resolve them later
  • Up-front effort commensurate with the 60% of the cost that is committed up-front with concept simplification and breakthrough ideas
  • Being good enough at product development to quickly commercialize breakthrough ideas
  • Optimizing product architecture, which is part of the 60% of the cost committed up-front
  • Concurrently designing products and manufacturing processes, tooling, and fixtures
  • Designing for manufacturability to minimize fabrication and assembly costs
  • Eliminating the need for skill, judgement, and calibration in the factory
  • Reducing the cost of quality by designing in reliability and quality at the outset

This session is ideal for product development team leaders, Engineering Managers, senior managers, and executives in companies that develop and manufacture their own products.

How to access this session

To purchase access by phone:

Call 1-800-338-2223 or 781-891-8080 (9:00am - 5:30pm EDT)