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.

This workshop is conducted onsite for individual clients and customized to the nature of the client’s products, markets, development processes and Production processes and to the depth of coverage in various topics.

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)