Cost Management
BRAIN STORMING
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. that is generated relative to a product regardless of source as well as data mining of that information
2 Comments
Charlie Stanton
I found success in the practical use of integrated DVP&R – DFMEA when assigned to Dodge Truck Chassis Engineering in the 1990’s. Mentally I adapted Thermodynamic “Control Volume Theory” to durability. Key was integrating it from design analysis, mule data acquisition, to prototype bench testing, to fixture reacted simulation through launch. It is not the same approach used for developing military hardware.
I’ll state my approached worked like a charm and ended up helping the release engineers ‘get it right the 1st time’.
Key was being inside the release group. Staff based testing does not work nearly as effectively as having the “Sword of Damocles” hanging over your own skull. I say this having worked for GMPG Noise & Vibration Lab in the 1970’s. There and then, deadlines came and went with little if any feedback on my performance – from the release groups.
Perhaps that is why so many of us engineers left – lack of positive impact on the product.
Mark Dalzell
I would like more information concerning this recommended changed to FMEA. I agree with the changes recommended.
Mark Dalzell
Director of Quality
The Morey Corporation