For engineer to order (ETO) product companies, excessive delivery time may be incurred if product design is completed after receiving the customer order. Additionally, the company incurs further cost and is exposed to additional risks of error. Furthuremore, to counter errors there is additional time and cost for checking the resulting rework to both products and documentation.
By working differently, companies can reduce delivery time, reduce costs and avoid unnecessary risks.
Problems:
Regardless of the slight differences in the specification, many of the product design tasks carried out following a customer order are similar, if not the same as the work carried out for previous orders. Therefore, the design engineers are carrying out unnecessary and iterative design tasks.
Manufacturing can not start before product design completes, resulting in production delay. Therefore, product design after receipt of a customer order adds time to delivery. A long delivery time may deter some customers from buying a product. An extended delivery time due to bottlenecks or errors may result in losing a return customer. Furthermore, an extended delivery time always results in poor cash-flow and additional costs.
During the transfer or processing of information, there is an increased risk of error. Checking procedures are used to reduce the impact of these errors which add further delay and costs to the product. Additionally, variations occur with the involvement of different people, leading to slight changes in the design or components used. These variants may add to the product complexity, increasing inventory and uncertainties in the product performance.
Solution:
ETO companies can be far more efficient if the product is designed to allow configuration. Configuration does not necessarily require a sophisticated product configurator or design automation software. A configurable product will significantly improve lead time, reduce costs and save errors. To achieve a configurable product, create a standard product reference library. Therefore, ensuring that the standards are complete, accurate and contain all the data required by all stakeholders. Depending upon product complexity, it is very likely that the product should be created using product standardisation principles. No further engineering is needed, reducing delivery time, sales and engineering cost, together with a reduction of risk.
If you need help with any of the above, please contact us at Gatehouse Design, we are always willing to help. We can also provide a free product audit to evaluate opportunities for design optimisation and cost saving.
Advantages from different perspectives
Shorter delivery time
Fewer bottlenecks requiring management attention
Receive products and information faster with fewer errors.
Shorter delivery time
Eliminate product engineering costs following an order
Complete product engineering more efficiently
Reduce risk as fewer processes and transfers of information
Fewer bottlenecks requiring management attention
Increased customer satisfaction as customers receives products faster with fewer errors.
Improved productivity as more work is possible
Increased profitability with the reduction of cost and risk, while improving productivity
Shorter delivery time
Fewer transactions
Eliminate product engineering costs following an order
Better cash-flow
Reduce risk as fewer processes and transfers of information
Fewer bottlenecks requiring management attention
Improved productivity as more work is possible
Increased profitability with the reduction of cost and risk while improving productivity
Increased customer satisfaction as customers receives products faster with fewer errors.
Shorter delivery time
Lower costs provide an opportunity to be more competitive
Increased profitability with the reduction of cost and risk, while improving productivity
Reduce risk as fewer processes and transfers of information
Fewer bottlenecks requiring management attention
Increased customer satisfaction as customers receives products faster with fewer errors.
Product design can be planned and managed without production deadlines
Shorter delivery time
Improved productivity as more work is possible
Reduce risk as fewer processes and transfers of information
Fewer bottlenecks requiring management attention
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 reduce delivery time 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 had 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.
