Cost Management

For an enterprise to thrive costs must be under control. There are many approaches of varying complexity available to ensure the organization’s costs are optimized. The variety of techniques allows any organization, independent of levels of complexity and sophistication to critique the cost structure and explore alternatives throughout the product lifecycle.

Cost Management - Value Transformation

Brainstorming

Brainstorming can be used for problem-solving as well as uncovering alternative approaches that may improve the cost structure for the product or process. Brainstorming is conducted multidiscipline to gather the most perspectives possible from which selection of the best possible solution will be made. We will employ many team idea generating and collecting methods as well as the use of tools such as mind mapping to build associations from which we can generate the best solution. Brainstorming does not apply solely to cost, but can also be applied to design solutions as well. We have used this technique many times to improve cost and generate intellectual property (patents).

Function Allocation Systems Technique

FAST is an acronym for functional analysis system technique. FAST allows us to reduce ambiguity in the definition of a functional product or a functional process. Value of a product is interpreted differently by different customers. Characteristics that are common to value are high level performance, capability, emotional appeal, and style relative to its cost. Value is generally expressed in terms of maximizing the function.

Value = (Performance + Capability)/Cost
Value = Function/Cost

Lean

Lean is a set of techniques that are typically employed to improve the costs in manufacturing by reducing waste, but not exclusively. In fact, this technique can be applied to process management in general, such as product development, and not just manufacturing. Cost improvement comes from managing and controlling aspects of manufacturing that have increase the cost. This includes transportation, inventory, motion, wait, over processing, over production, and defects.

Make or Buy Analysis

Make or buy analysis considers the scope and objective of the work compared to the company strategies and tactics for growth. Make refers to the company decision to internally handle the design and or fabrication of the component or subassembly. Buy refers to outsourcing the component or subassembly. There can be many compelling reasons to select one or the other of these alternatives rather than leave to random chance or little forethought.

Teardown

Teardowns are used to learn the cost implications of the design, often another manufacturer of the product. Tearing the product down is one method to identify and understand the cost drivers for the product. This includes the manufacturing, material composition and assembly of the product. The teardown will be multidiscipline approach to obtain a multitude of perspectives that will help ascertain the constituents of the product cost. This can be material, design or methods of production.

Software Testing Practices: A Guide to Quality Assurance

By Jon M Quigley This post is to pile on to a post by Robert Fey on LinkedIn. Below is a brief brainstorm of issues that can arise in product development and testing, resulting in poor outcomes.  Your thoughts are welcome. Here is a list of common failures in the context of software verification work […]

Bridging Manufacturing Continuous Improvement and Documentation

Introduction Manufacturing organizations striving for excellence often rely on two powerful forces: manufacturing continuous improvement and robust documentation. Yet, connecting what truly happens on the shop floor with what gets recorded can be far more challenging than it seems. This gap between practice and documentation often leads to inefficiencies, inconsistent training, and the risk of losing […]

Why You Should Stop Calling It an Engineering Change and Start Saying Enterprise Change

Why You Should Stop Calling It an Engineering Change and Start Saying Enterprise Change When I hear the phrase Engineering Change, alarm bells go off in my head. Not because I have something against engineers—I am one—but because the term limits the conversation and the scope of our thinking. In my decades of experience, I’ve […]

Insights on SIL, HIL, and the Pitfalls of Single Approach

Automotive Testing Best Practices: SIL, HIL, and Why a Single Approach Falls Short by Jon M Quigley As someone deeply engaged in automotive product development and testing, I believe that robust strategies using both software-in-the-loop (SIL) and hardware-in-the-loop (HIL) are essential. Drawing on the insights and frameworks of Jon M. Quigley, I want to explore […]

Prototype Parts vs Production Parts: Understanding Key Differences and the Path to Production

Prototype Parts vs Production Parts: Understanding Key Differences and the Path to Production Introduction The journey from an initial concept to a finished product involves several crucial stages, including prototyping and production. For both engineers and procurement teams, it’s vital to understand the differences between prototype parts, their uses, and the technical, regulatory, and supply chain […]

Configuration Management and Testing and Verification

Configuration management (CM) and product testing and verification are inextricably linked processes crucial for successful product development and production. Without effective configuration management, performing effective testing becomes difficult. CM provides the foundation for efficient, reliable, and insightful testing activities in today’s complex and constantly evolving systems across automotive, aerospace, defense, and software development industries.  This […]

🚗 Value Transformation in Product Development 🚗

At Value Transformation LLC, we bridge the gap between vision and reality for innovators in the automotive and specialty vehicle sectors. Harnessing decades of hands-on experience and cutting-edge manufacturing, our team delivers. Learning quickly is essential in product development. For example, waiting 10-12 + weeks for prototype wire harnesses delivery does not support this requirement. […]

Why Configuration Item Traceability Matters in PLM Systems

Don’t Erase the Past to Reuse a Number Introduction: Configuration Item Traceability in PLM (#1) In product lifecycle management (PLM), effective configuration item traceability is not just a best practice—it’s a critical requirement, particularly for regulated industries such as medical devices, aerospace, and rail. Drawing on the principles and works of Jon M. Quigley, a […]

Essential Gears of Product Development: How to Build Winning Products

Introduction In today’s competitive market, understanding the gears of product development is crucial for delivering successful products. Each element—like requirements elicitation, configuration management, and risk management—acts as a gear in a well-oiled machine. When these gears work in harmony, teams can accelerate innovation, minimize risk, and maximize the value of their products.  This is not […]

Software Download Over the Air: Air: Pros, Cons,

What is Software Download Over the Air (DOTA)? Jon M Quigley Software download over the air (OTA) refers to the wireless delivery of software updates, patches, or new features directly to devices without the need for physical connections or manual intervention. This technology is widely used in smartphones, IoT devices, vehicles, and enterprise systems to […]

Building a Cause and Effect Diagram

Pugh Matrix

How to Brainstorm

Using Pareto Charts

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