Cost reduction analysts working for mechanical engineering companies work on reducing costs across the entire product lifecycle, from the design phase onwards. It is estimated up to 80% of product lifecycle costs are incurred during development – 60% of them at the initial concept stage.
The earlier product development costs are incurred, the harder they are to remove later. The engineering BOM should not just reflect system design, but manufacturing methods as well. For this reason, the term manufacturing BOM is often used.
The key to cost-effective system development is Concurrent Engineering – the practice of correlating hardware design with end-point manufacture. Evidently, using existing manufacturing processes is the most cost-effective way forward, but where a new mechanical design warrants a new manufacturing process (or modification of an old one), the two should be developed concurrently.
Concurrent engineering also means the active participation of everyone concerned with the project, from engineers to OEMs to vendors, from an early stage. To cost reduction consultants, co-locating the mechanical engineering and manufacturing sites ensures low production costs and a high level of teamwork. While costs can often be cut by outsourcing various elements abroad, the company must ensure it is getting the same level of quality and service it would in-house or from local providers. Whether the project is localized or not, good project data and master data management are essential.
We at Enventure Technologies offer a wide range of mechanical and component engineering services. Our cost reduction consultants can evaluate your entire project, streamlining costs and generating tremendous savings.