bg-design-for-costs

Design To Cost

Consultants of ICG will carry out practical projects using the method of Design to Cost in your company.
The aim of the project is to reduce the production costs of a product or production process by up to 30% while maintaining full functionality and quality.

Design to Cost – This unique methodology is effective for all manufacturing companies which have their own development, or at least may affect development. Using a series of workshops and analyses, we draw up an action plan of product redesign and related processes within 3-6 months to reduce direct costs. The output of the project is a proven solution prepared to be implemented, including the calculation of benefits.

Design to Cost (sometimes called Design for X) is a special approach, which combines several strategies with a common goal. Typical strategies are: Design for Assortment Costs, Design for Assembly Costs, Design for Manufacture Costs, Design for Quality Costs, and Design for Robustness…

Project procedure

  • Selecting a product to be redesigned (a product group), setting a goal and relevant strategy of Design for X.
  • Cost analysis and identification of so-called “cost drivers”.
  • Generating solutions and alternatives.
  • Conceptual design and testing strategies.
  • Prototyping of a product and production/delivery processes.
  • Standardization and implementation.

 

Benefits of the project (typical outputs)

  • Reduction of direct costs by 10-30%, while maintaining the quality and functionality.
  • Return on investment in a Design to Cost project is guaranteed.
  • Transfer of know-how of the whole methodology from our consultants to employees of the customer.
  • A new perspective on solving problems in teams using a unique methodology.

 

When to use a Design to Costs project?

  • The traditional process improvement hasn’t produced expected improvements in quality.
  • Strengthening positions of customers and competitors are reflected in the requirement to continually reduce prices.
  • Product prices are falling, input costs are increasing. You are not able to compensate cost increase for internal savings.
  • The owners or shareholders are not satisfied with the product profitability achieved.

 

Our consultants have more than 15 years of experience in Design to Cost. Contact us to get more information and a non-binding study of feasibility in your environment.

Cartoon: OK, costs went down, but will it still fly?

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