Component volume affects the business in several ways. Better prices may be negotiated or offered for more parts. Higher component volume can justify moving to lower unit cost manufacturing processes. Reducing the number of parts used reduces inventory and associated costs. Greater reuse of parts simplifies product management and builds greater familiarity and confidence in parts used.
By working differently, companies can increase component volume, reduce the number of components used, reduce cost and management time.
Problems:
When businesses employ reactive product design, satisfying one individual order at a time is the focus. Parts may be varied to suit one application. There is a high likelihood of the introduction of new parts. Reactive product design tolerates product variations with little justification. The practice adds time to the engineering and purchasing processes. Risks increase as new parts may fail to integrate or perform as expected. Low component volumes hinder efforts to negotiate better prices.
Solution:
Principles of product standardisation are employed. Products become a complete integrated product family. Components re-used wherever possible. These components are fully validated so that there integration and sufficiently proven. Resulting in fewer components used with higher purchase volumes and lower inventory requirements. Purchasing personnel have more opportunity to negotiate better prices.
Advantages from different perspectives
Lower costs provide an opportunity to be more competitive
Reduced inventory requirements
Reduced component risks
Lower component costs
Increased profitability with the reduction of cost and risk, while improving productivity
Reduced inventory requirements
Lower component costs
Increased profitability with the reduction of cost and risk, while improving productivity
Increased customer satisfaction as customers receives products faster with fewer errors.
Lower costs provide an opportunity to be more competitive
Fewer components to integrate and verify
Fewer components to stock
Further help and assistance
Gatehouse Design are specialists in product standardisation, product configuration and design automation. We can help companies develop highly effective product strategies, maximising profitability, productivity and customer satisfaction. We can help you increase component volume and improve the efficiency of your business. Please contact us to discuss any product design related issues that you may have.
Peter Slee-Smith founded Gatehouse Design in 2012, a Chartered Mechanical Engineer with more than 30 years experience in industrial design. Peter qualified with a Masters Degree and has held senior positions in many leading engineering and product manufacturing companies. He is passionate about product design efficiency and has written many articles on the subject. Based in Littleport just outside Ely in Cambridgeshire, Gatehouse Design specialises in product standardisation, configuration and design automation.
