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Mitigating High Costs in New Product Development: Leveraging Design for X Methodologies

Written by Robert Davis | Oct 22, 2024 11:07:48 PM

High development costs are one of the primary concerns when designing a new product. By incorporating DFX methodologies into the product design process, companies can effectively mitigate the high costs associated with developing new products.

Whether through improving manufacturability, simplifying assembly, controlling costs, enhancing testability and reliability, or focusing on usability and modularity, these methodologies provide a strategic approach to managing expenses while ensuring the final product meets market demands. 

Here’s a closer look at using DFX methodologies to mitigate the cost risks associated with designing a new product, along with examples, reasoning behind avoiding each path, and the financial impact:

Read more below.

The focus and discipline of DFX is a powerful tool if used as part of a broader strategic approach to developing product/process differentiation, and a sustainable advantage against competition. Involve Design for X in Strategy. Once your team has determined the focus of your strategy, place the focus of design on developing competitive advantage. 

At Boston Engineering, DFX is a core part of creating values during our product development process. We focus on several key DFX areas that align with our expertise:

Learn more about Design for X (DFX) at Boston engineering: Boston Engineering Design for X

The following are illustrative examples of a potential product design decisions a company might make to take strategic advantage of the noted benefits of introducing a new product to market vs. updating an existing product. The cases are presented to evoke thoughts and questions around the potential business case for such decisions, and the reasoning behind each. 

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Design for Manufacturability (DFM) 

How DFM Mitigates High Costs: DFM focuses on simplifying the manufacturing process, reducing the complexity of production, and minimizing the need for specialized equipment or processes. By designing products that are easier and more cost-effective to manufacture, companies can significantly lower production costs. 

Application: 

  • Standardization: By using standardized parts and materials that are readily available, DFM reduces the costs associated with custom manufacturing. 
  • Efficiency: Streamlining the manufacturing process to reduce waste and improve production speed can lead to cost savings in both materials and labor. 

Example: A company designing a new consumer electronic device applies DFM principles to ensure that the product can be manufactured using existing assembly lines without requiring costly retooling or new equipment. 

Design for Assembly (DFA) 

How DFA Mitigates High Costs: DFA focuses on simplifying the assembly process, which can lead to reduced labor costs and faster production times. By minimizing the number of parts and designing for ease of assembly, companies can lower the overall cost of bringing a product to market. 

Application: 

  • Reduced Part Count: By designing products with fewer components, DFA reduces the complexity and time required for assembly, leading to lower labor costs. 
  • Automation-Friendly Design: DFA makes it easier to automate the assembly process, which can further reduce costs by minimizing manual labor. 

Example: A manufacturer of home appliances redesigns a vacuum cleaner using DFA principles, resulting in a simpler, more modular design that can be assembled more quickly and with fewer errors, thus lowering assembly costs. 


Design for Cost (DFC) 

How DFC Mitigates High Costs: DFC directly addresses cost control throughout the design process. By focusing on cost reduction from the outset, companies can design products that meet target cost objectives without sacrificing quality. 

Application: 

  • Cost-Effective Materials: DFC encourages the use of materials that balance quality and cost, ensuring that the final product remains affordable while maintaining performance. 
  • Process Optimization: DFC helps identify and eliminate costly processes, allowing companies to streamline production and reduce overall expenses. 

Example: A consumer goods company develops a new line of kitchen appliances, using DFC to select materials and manufacturing processes that keep costs within budget while still offering premium features. 


Design for Testability (DFT) 

How DFT Mitigates High Costs: DFT ensures that products can be easily and efficiently tested during production, which reduces the likelihood of defects reaching the market. By catching issues early, companies can avoid the high costs associated with recalls, rework, and warranty claims. 

Application: 

  • Integrated Testing: Designing products with built-in testing capabilities allows for faster and more thorough quality checks, reducing the time and cost of testing. 
  • Early Detection: DFT helps identify potential issues during the design phase, allowing for corrections before costly production begins. 

Example: An automotive company designs a new vehicle with DFT principles, incorporating diagnostic systems that automatically test critical components during assembly, ensuring that defects are caught early and reducing the cost of post-production fixes. 


Interested in providing your product development team with DFX skills? Learn More about our Applied DFX process and development workshops.

 

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Design for Reliability (DFR) 

How DFR Mitigates High Costs: DFR focuses on ensuring that products are reliable and durable, which reduces the need for expensive repairs, replacements, and warranty claims. By designing for long-term reliability, companies can lower lifecycle costs and enhance customer satisfaction. 

Application: 

  • Stress Testing: DFR involves rigorous testing under various conditions to ensure that the product can withstand real-world use, reducing the likelihood of costly failures. 
  • Durable Materials: Selecting materials that enhance product longevity can reduce the costs associated with returns and repairs. 

Example: A power tools manufacturer designs a new drill with DFR principles, ensuring it can handle heavy-duty use without failing, thereby reducing the costs of returns and warranty claims. 

Design for Serviceability/Maintainability (DFS) 

How DFS Mitigates High Costs: DFS focuses on making products easy to service and maintain, which can lower the costs associated with repairs and extend the product's life. Products that are easy to repair or upgrade require fewer resources over time, reducing the total cost of ownership. 

Application: 

  • Modular Design: DFS promotes the use of modular components that can be easily replaced or upgraded, reducing the cost of service and maintenance. 
  • Accessible Components: Designing products so that critical components are easy to access and service can reduce labor costs and downtime. 

Example: A medical device company designs a new piece of equipment with DFS principles, ensuring that key components are easy to access and replace, reducing the costs associated with servicing the equipment in the field. 

Design for Usability (DFU) 

How DFU Mitigates High Costs: DFU focuses on creating products that are intuitive and easy to use, which can reduce customer support costs and increase product adoption. By minimizing the learning curve, companies can avoid the costs associated with extensive training and support. 

Application: 

  • User-Centered Design: DFU involves designing products with the end-user in mind, reducing the need for costly revisions and customer support. 
  • Simplified Interfaces: By designing simple and intuitive interfaces, DFU reduces the likelihood of user errors that could lead to costly returns or replacements. 

Example: A software company develops a new application with DFU principles, ensuring that the interface is easy to navigate and requires minimal training, thereby reducing the costs associated with customer support and user onboarding. 

Design for Modularity (DFMo) 

How DFMo Mitigates High Costs: DFMo focuses on designing products with interchangeable modules, which can reduce manufacturing complexity and allow for cost-effective customization. Modular designs also enable easier upgrades and repairs, reducing long-term costs. 

Application: 

  • Interchangeable Parts: DFMo encourages the use of standardized, interchangeable parts, which can be produced at scale, reducing production costs. 
  • Scalable Production: Modular designs allow for more flexible and scalable production, which can adapt to demand fluctuations without incurring high costs. 

Example: A consumer electronics company designs a modular smartphone that allows users to easily upgrade components like the camera or battery. This modularity reduces the need for entirely new product lines, lowering development and manufacturing costs. 

 

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Developing successful new products from scratch is challenging enough, but what about improving on existing designs? 

In this eBook, we’ll dive into the real-world experiences of DFX subject matter expert John DePiano, exploring the common areas where existing product owners excel, as well as the key opportunities where targeted DFX support can drive major improvements.

 

 

 Understanding the Importance of a DFX approach

Applying Design for X (DFX) methodologies upfront in product development optimizes the entire lifecycle by improving manufacturability, testability, reliability, usability, and other critical characteristics. This avoids costly redesigns later on, facilitates high-quality products that satisfy customers, reduces manufacturing and service costs, and supports flexibility through modularity and platforms. The holistic perspective of DFX drives efficient, cost-effective delivery of successful products that provide competitive advantage. Investing in DFX early pays dividends across the entire product lifespan.

Do you offer training on DFX for engineering teams?

Education is critical to effectively implement DFX principles. We provide training tailored to your engineers’ roles and product lines. This includes overall DFX methodology, deep dives into specific disciplines like design for reliability or manufacturability, and practical application workshops. Our hands-on approach combines real-world examples and case studies with tutorials on leading DFX software tools. The goal is building organizational DFX expertise and establishing repeatable processes that endure beyond individual projects. Investing in DFX knowledge pays dividends across your entire product portfolio. 

Ready to Begin your next DFX Project? 

Whether you’ve created a new technology, or have an innovative way to use an existing solution, Boston Engineering will turn your ideas into reality.  Our experts and Industry Partners will enhance your current team or manage the entire Product Development Process from Market Analysis to Production. Don't leave complex projects or high visibility product launches to chance. Know you're going to get the results you want by working with industry leaders in design, development, and deployment of innovative products driven by Novel Engineering. Contact Boston Engineering Today to get started.

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Impossible Challenge? Try Us. 

Selecting a partner to help you complete your design project is a valuable option to reduce project duration and save money.    

The Boston Engineering product development system encompasses DFX to ensure a smooth product launch and success in the marketplace.  Boston Engineering has DFX knowledge and experience to address aspects and values of a product such as manufacturability, test, reliability, safety, serviceability, cost, and compliance with industry standards and government regulations.


 

 

 

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