Design to Cost Workshop

This three- to four-day workshop addresses how to establish a target price and cost and then achieve the cost target during requirements definition, concept development, assembly & part design, and process design.

1. INTRODUCTION

  • Effect of Product Development on Cost
  • Traditional Approach to Product Cost Management
  • Target Cost Approach & Comparison
  • Design to Cost (DTC) as a Basis to Achieve a Target Cost
  • A Comprehensive Approach to DTC Achievement During the Five Development Phases:
    • Requirements Definition
    • Concept Development
    • Assembly Design
    • Part Design/Selection
    • Process Design

2. PRODUCT ECONOMICS

  • Economics of Product Development
  • Relationship of Product Costs, Development Costs & Volume
  • Elements of Costs and Life Cycle Costs (LCC)
  • Nonrecurring Development Costs and Recurring Production Costs
  • Tradeoff’s Between Recurring & Nonrecurring Costs
  • Obtaining & Using Manufacturing and Supplier Cost Data
  • Experience Curves
  • Exercise – New Product Business Case

3. DEVELOPING A DESIGN TO COST OBJECTIVE & TRACKING COSTS

  • Determining a Target Cost/Design to Cost Objective From the Target Price
    • Determining Supply Chain Margins, Distribution Costs, Warranty Costs, Corporate Allocations & Profit
    • Target Cost Worksheet & Example
  • Allocating & Tracking Target Costs/Design to Cost Objectives
  • Using Product Cost Models and Cost Tables to Track Target Costs/Design to Cost Achievement
  • Basic Product Cost Models – BOM Cost Roll-ups and Spreadsheets
  • Creating and Refining a Predictive Cost Model
  • Commercial Cost Model Tools
  • Validating Cost Projections
  • Cost Tracking and Performance Monitoring
  • Target Cost Tracking Worksheet
  • Life Cycle Cost Costs & Cost Models

4. DTC DURING REQUIREMENTS DEFINITION

  • Requirements are the Ultimate Cost Driver
  • Start with the Customer Value Proposition
  • Conjoint Analysis – Determine What is of Value to the Customer
  • Focus on Customer Needs – Functionality vs. Affordability
    • Using Quality Function Deployment to Balance Requirements and Cost
    • Using Quality Function Deployment to Understand Cost Drivers
    • Using Quality Function Deployment to Balance Specification Values and Cost
  • Customer Function Diagram to Abstract Requirements and Assess Completeness
  • Evaluating Requirements Based on High Cost to Function Ratio

5. DTC DURING CONCEPT DEVELOPMENT

  • Use of Function Analysis to Explore Concept Requirements and Reduce Costs
  • Value Engineering & the Function Analysis/Value Analysis Methodology
    • Function Analysis Exercise I
    • Function Cost Matrix & Value Analysis Matrix
    • Function Analysis System Technique (FAST)
    • Function Analysis Exercise II
  • Importance of Exploring Concept Alternatives – The Seven Alternatives Method
  • Brainstorming and Other Creativity Techniques
  • TRIZ and Theory of Inventive Problem Solving
  • Trimming and Simplification
  • Optimizing the Concept Design
  • Concept Evaluation and Concept Selection Matrix
  • Simplification and the Impact of Architecture on DTC

6. DTC DURING ASSEMBLY DESIGN

  • Function Analysis with Assembly Design
  • The Power of Considering Assembly Design Alternatives
  • Design for Assembly (DFA)
    • DFA Principles & Guidelines
    • The Key DFA Principle – Simplification
    • DFA Exercise I
    • Avoiding Non-Recurring Costs with Standardization
    • Mistake-Proofing Assembly
    • Mistake-Proofing Exercise
    • Assembly Process and DFA Principles
      • Handling and Orientation
      • Location and Insertion
      • Joining and Fastening
      • Adjustment & Finishing
    • DFA Exercise II
  • Design for Test – Developing an Economic Test Strategy

7. DTC DURING PART DESIGN/SELECTION

  • Function Analysis with Part Design
  • Evaluating Material and Process Alternatives
  • Trade-offs of Nonrecurring and Recurring Costs with Tooling Near Net Shape Parts
  • Standardization and Simplification
  • Design for Manufacturability (DFM)
    • Evaluating Material and Process Alternatives
    • Production Rate & Cost Trade-off’s: Materials, Manufacturing & Tooling
    • DFM Principles & Guidelines – Machining, Sheetmetal, Injection Molding & PWB’s
    • DFM Exercise
  • Reducing Costs with Early Supplier Involvement & Effective Supplier Partnership
  • Purchasing Actions to Reduce Cost
  • Minimizing Supply Chain and Logistics Costs

8. DTC DURING PROCESS DESIGN

  • Principles of Process Design for Low Cost
  • The Role of Value Engineering in Process Design & Improvement
  • Cost Reduction through Automation and Integration
  • Re-engineering the Development and Production Processes
  • The Production Preparation Process (3P)
  • Considering the Most Economic Process with Seven Ways
  • Eliminating Non-Value-Added Activities
  • Minimizing Cost Through Maximizing Process Capability
  • Centering the Mean and Establishing Realistic Tolerances
  • Optimizing Tolerances for Low Cost

9. ACHIEVING DESIGN TO COST

  • Challenging Your Assumptions
  • DTC Exercise
  • Achieving DTC – Summary by Development Phase

10. DTC PROCESS AND ORGANIZATION

  • Establishing a Design to Cost Program
  • The Design-to-Cost and DFM/A Process
  • Design Reviews
  • Avoiding Local Optimization and Global Suboptimization – Organizational Issues
  • Use of Product Development Teams to¬†Achieve Cost Targets
  • Roles and Responsibilities
  • Supplier Roles in Design to Cost
  • Essential Metrics to Track Target Cost Achievement

11. IMPLEMENTATION & SUMMARY

  • The 10 Steps to Design-to-Cost
  • Deploying a Design to Cost Program to Your Business/Project
  • Overcoming Impediments and Applying Lessons Learned
  • Developing an Action Plan to Close the Gap
  • Sources of Further Information
  • Questions and Answers

12. DTC EXERCISE

  • Exercise Analyzing Company Item(s)