DFMA The Product Then Lean The Process

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2 DFMA The Product Then Lean The Process Combining an up front DFMA analysis of the product with Lean Manufacturing approaches to production results in products that are lean from the start. Nicholas P Dewhurst Boothroyd Dewhurst, Inc. Wakefield, RI, Table of Contents Abstract 2 Introduction 3 Description of the problem 5 Design for Assembly (DFA) Analysis of a Motor Assembly 8 Early Cost Analysis and Product Simplification 10 Negotiate With Suppliers Using Should Cost Methodology 10 Design for Manufacture (DFM) Analysis 11 Design for Assembly (DFA) Analysis 13 Early Cost or Should Cost Analysis Example 14 A Case Study 20 Lean Manufacturing 22 DFMA the Product 23 Then Lean the Process 25 Conclusion 27 References 28 DFMA The Product, Then Lean The Process White Paper, Page 1 of 28

3 Abstract Lean Manufacturing has revolutionized the manner in which many of the world s leading companies bring their products to market. It is a cost reduction and efficiency philosophy that has an unwavering focus on eliminating waste. While traditionally thought of as applying only to the manufacturing floor, Lean also has application throughout the entire organization and supply chain. But have we made the most of it? What we don t see traditionally from Lean Manufacturing initiatives is an equally vigorous emphasis on the product itself. Fundamental to the ultimate success of Lean is an investment of time to understand the design of the product for which we are attempting to create a Lean process. Design for Manufacture and Assembly (DFMA) is an established software tool that has helped manufacturers create world class products with improved quality, lower cost, and shorter design cycles. It assists manufacturers in understanding the costs of production from the earliest stages of product development. Through product simplification, parts consolidation, examination of material choices, and consideration of manufacturing processes, DFMA has on average cut overall product cost 50 percent and product development cycle time 45 percent, saving large and small manufacturers worldwide millions of dollars. This paper will explore the additional savings that could be unlocked when engineers combine an up front DFMA analysis of the product with Lean Manufacturing approaches to production. Combining these two techniques results in products that are lean from the start. DFMA The Product, Then Lean The Process White Paper, Page 2 of 28

4 Introduction Companies worldwide are striving to reduce the costs of their products to impact their bottomline profitability. When it comes to improving profits, there are really only two choices: sell more or cut the cost of what is currently being sold. Given the depressed economy of the last several years, the sell more option, in many cases, has been taken off the table. As a result, cost cutting is often the most effective path. Cutting costs, which is traditionally done through job cuts and attempts at improving operational efficiency, is a short term solution to what is a long term problem. Costs need to be more fully understood, controlled, and reduced from the earliest stages of product development. One solution, adopted by a wide range of companies, is the implementation of Lean Manufacturing. Lean has proven to be very successful and has resulted in significant savings for adopters of the discipline. But there is a bigger picture question that Lean doesn t address: Could something have been done, before getting to the factory floor, to avoid more of the costs that Lean Manufacturing then tries to save? Understanding both component and product costs earlier in the design process can have a significant influence on cost control. Early cost analysis and design decisions based on accurate and credible pricing information can help product manufacturers produce the most efficient and profitable parts and products. It has long been established that 70 percent of the cost of a product is determined at the design phase (1). As a result, once the part or product is being manufactured there are a limited number of things that can be done to reduce its costs without starting over again. Making significant changes in design, once production has begun, can incur not only large costs but also potentially significant risk. Without the use of early part cost estimating and ease ofmanufacture analysis, production managers have difficulty knowing what the financial impact is should they choose a late stage design fix. In these cases, since there is a part or product already in production for which most costs are now known, it is much easier for an organization DFMA The Product, Then Lean The Process White Paper, Page 3 of 28

5 to cite potential savings from Lean Manufacturing efforts and follow that post design strategy exclusively. In the long term, however, this approach is problematic. Resources are then directed only to Lean Manufacturing teams, Kaizen events, and Green and Black Belt programs, which are valuable techniques but do not address the causal relationship between part design and efficiency of production. What product manufacturers also need is a good way to understand tradeoffs in cost associated with changes in the design of the product, the manufacturing process, and materials used to manufacture the individual part. When this information is in the hands of the engineering team early in the design phase, it allows them to make much better decisions with regard to cost. This is what a DFMA analysis of the product provides. DFMA is comprised of a two part analysis of product design and development. The Design for Assembly (DFA) module is a quantifiable methodology for consolidating parts and simplifying product assembly (for more information click The Design for Manufacture (DFM) module provides a systematic approach to reducing manufacturing costs by examining manufacturing processes and material choices (for more information click There are significant differences in achievable savings when one uses DFMA to look at costs early and understand available alternatives, versus using traditional Lean Manufacturing efforts later in the product cycle when the design is set and manufacturing is underway. DFMA The Product, Then Lean The Process White Paper, Page 4 of 28

6 Description of the problem Typically, in the early stages of development design engineers are obsessed with satisfying purely functional requirements and are disengaged from the specific cost implications of their decisions. Some would argue that this uncompromisingg focus is appropriate since the product has to meet the engineering specifications and functionality set out by the company and demanded by customers. An overly isolated focus on function, however, can cause teams to miss their customer target cost. Paradoxically, designingg for cost and function at the same time generally allows manufacturers to build more performance into products for the same or lower price. Designingg for function alone consumes large blocks of time in the product development process, creating the perception that there is simply no time for anything else. Studies have shown, though, that an increase in time spent during thee concept phases of a product s design development with one portion of this early concept phase being a cost or Design for Assembly analysis can actually shorten the time to market (Figure 1). DFMA Design Process Convention nal Design Process Percentage off Design Time Concept design Design changes Initial design Data dissemination Figure 1: Time spent in phases of product development (1) DFMA The Product, Then Lean Thee Process White Paper, Page 5 of 28

7 In addition to shortening the time to market and reducing the overall design cycle, a productive side effect of these analyses is that the design team actually understands the product cost before production. Understanding cost prior to manufacture allows them to make design decisions that can influence final costs. In a more traditional product development cycle, it s less likely that they would have had the time or been able to make changes later on. For example, if a team designed a part to be produced by flame cutting carbon steel and machining to final shape, and much later discovered that costs were too high, they may have very limited alternatives. Tooling may have already been purchased, the supply chain established, or products may even be rolling off the production line. In these situations, Lean Manufacturing looks like a good idea. With Lean, nothing will change with respect to the design of the product, so there is little risk in undertaking the effort. And simple changes in the process could potentially have some benefit: reducing machine setup and change over time can influence cost, as can changes in the sourcing of the component to a more efficient supplier, and changes in the choice of sheet size and material usage. But if designs were scrutinized early in the product design cycle, forging the part to a near net shape might prove to be much more cost effective from the start. Forging the part, for example, could allow for substantial savings. Making the change from flame cutting a plate to forging would have been a fairly simple exercise during design. Yet knowing whether or not that would make sense financially is something that most design teams struggle with. It is important not only to understand the cost of a design, but the distribution of that cost as well. When design teams do document this, they can focus their efforts to gain the greatest impact. Given that 75 percent of the cost of the part is in the material, looking for cost savings in improved setup efficiency, for example, would prove to be a fruitless exercise, since it may only consume a very small portion of the total cost. DFMA The Product, Then Lean The Process White Paper, Page 6 of 28

8 Product simplificatio n can be defined as the challenge too come up with a design that meets the required functionality with the fewest parts. It can be accomplished using a classic Design for Assembly (DFA) analysis. When it s applied at the early stages of the product design, DFA can have far reaching impacts on product cost. Consider thee following Motor Assembly example: While these principles hold true for components, the same ideas apply (and some would argue even more so) to whole products. The graph below shows that about 70 percent of the cost of most products is tied up in the cost of the parts, while the other 30 percent is tied up in labor and overhead (Figure 2). Overhead, Assembly 24% Labor, 4% Piece Part Costs (with embedded labor), 72% Figure 2: Typical product cost breakdown (3). Costs of the product are calculated at final assembly stage. A share of the total labor associated with a part is tied up in the piece part cost slice of the pie. Given this product cost breakdown, or distribution, it becomes obvious that a focus on the piece part cost could have the most potential impact on the cost of the product. So while a discussion about the right choice of manufacturing process and material combinations for the production of individual parts is essential, the even bigger picture view is one off product simplification. DFMA The Product, Then Lean Thee Process White Paper, Page 7 of 28

9 Design for Assembly (DFA) Analysis of a Motor Assembly Figure 3: The original motor assembly design (3) Application of Lean Manufacturi ng to a product design like the original motor assembly (Figure 3) could certainly have some effect on its cost. But other techniques like early DFM Concurrent Cost and Design for Assembly analysis can result in a simplified redesign of the product (Figure 4) and have an even bigger impact. DFMA The Product, Then Lean Thee Process White Paper, Page 8 of 28

10 Figure 4: Motor assembly redesign using DFA techniquess (3) Working from the assumption that both designs meet the required end functionn and full engineering specification, you can start to see how changes to the original design of the product can have a much bigger impact on cost than anything that could be achieved through Lean attempts to create a more efficient manufacturing process. Comparing the two designs, the redesigned assembly has 12 fewer parts than the original: That change results in 12 fewer drawings and digital models to maintain, 12 fewer suppliers to qualify, 12 fewer service parts to consider, 12 fewer items to inventory, and so on. The redesign also has a bottom line cost that is 46 percent lower thann that of the original design. DFMA The Product, Then Lean Thee Process White Paper, Page 9 of 28

11 In short, efforts to cut costs using Lean have been focused on the wrong area. To achieve the most impact, our efforts need to be pushed upstream to the design stage and let a quantitative methodology that considers cost dictate the most efficient process for manufacture. Early Cost Analysis and Product Simplification If engineers were given tools to help them understand what product designs were really going to cost, could they do something about it before it was too late? Can early should cost analysis help push Lean upstream? Engineering teams have shown historically that they don t have a good handle on cost until the product is approaching, or actually in, production. To break this traditional cycle in product development, they can put tools in place to help their design teams understand cost. Once there is an understanding of the piece part and labor costs, engineers can make changes to the design of the parts and product when it s still in the design phase in order to impact cost and achieve targeted profit margins. If there is a true understanding of costs on a product s bill of materials, the design team can influence those numbers in three different ways: Negotiate With Suppliers Using Should Cost Methodology First, the design team can provide the supply chain group with the results of their cost modeling. This information is extremely valuable when that group engages the supply chain in negotiations. No longer will the purchasing department need to send drawings to suppliers, wait several weeks (in many cases) for the quotes to come back, then try and make sense of the numbers, and finally select a supplier. Instead, prior to the quoting process, they will already have information about what the costs of all of the parts on the bill of material should be DFMA The Product, Then Lean The Process White Paper, Page 10 of 28

12 ( should cost )decisions. It would be a good idea if all bills of material included a column for what the cost of They can then use this information to make better buying and sourcing the items should be. Design for Manufacture (DFM) Analysis Second, if the costs of the product (as a result of the component cost modeling) do not meet the company s projected profit margins, the design team can use DFM techniques to investigate trade offs at the piece part level. Choices of manufacturing processes and material combinations, along with minor changes in the design of the individual parts, will have an impact on cost. Through early analysis thesee outlays cann be documented, and data driven decisionss can then be made to choose a more profitablee design direction. Consider the following example: Figure 5: 'Cast' part geometry (3) DFMA The Product, Then Lean The Process White Paper, Page 111 of 28

13 Process Choice Region Cost Sand Cast Domestic Supplier $4.81 Sand Cast Low Cost Region $3.82 Die Cast Domestic Supplier $3.50 Die Cast Low Cost Region $3.35 Table 1: Cost comparison of processes and regions for cast part This particular component was designed to be a sand casting and was purchased through a domestic (USA) source. A decision was made that outsourcing this component to a low cost region would result in some savings. In Table 1, we can see that, in fact, that is the case. However, the use of early cost modeling techniques allows us to explore other alternatives and challenge the choice of manufacturing process as well as the design of the component itself. In this example, we can see that die casting this geometry from a domestic source would actually result in savings above and beyond sand casting in a low cost region. The next logical question is whether die casting in a low cost region of the world would make even more sense; and at first pass it does, since there is some small additional savings associated with changing manufacturing to a foreign location. The costs listed here, however, are just the costs of manufacture, and there are other significant costs that need to be taken into account in order to make an apples to apples comparison between all of the alternatives. Once logistics, shipping, communications, and other associated costs have been considered, it is likely that the die casting in the low cost region would not be justified. In the end, when all costs have been taken into account, domestic manufacture using the die casting process makes the most economic sense. (Click link for a full study on the issue of the hidden costs of offshoring, published in 2004: ). DFMA The Product, Then Lean The Process White Paper, Page 12 of 28

14 Design for Assembly (DFA) Analysis A third option resulting from an early understanding of the cost is to review the design of the product itself. The most effective way to reduce the cost of a product is to reduce the number of parts required for that product to accomplish its desired end function. In addition to generating labor time estimates, a DFA analysis helps thee design team understand the theoretical minimumm part count. To accomplish this, three questions are asked of each part in the product in order to justify the existence of that part as being separate, by necessity, from all other parts in the product (3): Does the part have to be made of a different material? Does the part have to move with respect to other parts in the product? Does the part have to be separate in order to nott prevent the assembly of other necessary items? Answers to these questions will lead to a theoretical minimum part count that is needed for the product to accomplish its function. Given this information, a Design for Assembly Index can be calculated using the following formula: Equation 1: The Design for Assembly (DFA) Index. In this equation NM represents theoretical minimumm number of parts and TA stands for Total Operation Time. (3) This index representss the efficiency in the design from an assembly perspective. It helps guide the team by comparing the part count in an existing design with what is possible to achieve. Generally, the higher the DFA Index, the better the design from a cost perspective (a DFM cost analysis of the revised components has not been done at this stage and would need to be completed in order to verify this last conclusion). DFMA The Product, Then Lean The Process White Paper, Page 13 of 28

15 DFA leads to dramatic savings and increased ease of manufacture that will ultimately result in much more significant savings than could be achieved with Lean Manufacturing techniques alone. For example, consider the four following designs (Figuree 6). The one on the left is complex and, once in production, would be difficult to produce at a cost as low ass one designed from the start for ease of manufacture. The three designs on the right, however, have been progressively designedd using DFA to be low cost and efficient to manufacture. Once the design on the left is in production, no additional efforts can realistically comee close to producing a product with a cost as low as the one designed right the first time. Figure 6: Designs for a sample part illustrating a reduction in part count (3) Early Cost or Should Cost Analysis Example Cost analysis is derived from data related to families of compatible manufacturing processes and materials. The choice of an optimum manufacturingg process from these family matchups entails the use of different, comparative cost models within DFM that reveal cycle times, material usage, scrap values, tooling costs, etc., associated with each of the individual processes. DFMA The Product, Then Lean The Process White Paper, Page 14 of 28

16 Consider the following example, where we will begin to cost out what might be the preferred process choice of a typical company that relies on its past practices or a good first guess instinct: Figure 7: A napkin sketch for a new part Using established manufacturing process cost models in DFM (or should the need arise, developing one), we can determine the should cost for this component early in the design phase as follows: Weight of a Part 1. Again, for the purposes of providing a benchmark before a formal DFMA analysis, let s assume that this part willl be laser cut from a sheet of generic carbon steel and produced in annual volumes of 1,000 parts. DFMA The Product, Then Lean The Process White Paper, Page 15 of 28

17 2. Simple geometry and the density of the steel tell us that the blank has a weight of lbs. 3. The weight of the part is determined by subtracting the weight of the holes that are cut in the blank from the weight of the blank itself. Again, simple geometry tells us that the weight of the holes cut from the part is lbs., resulting in a part weight of lbs. Cost of a Sheet 1. Next, we can assume that this part will be cut from a 36 x 36 sheet. Allowing for a part to part and part to sheet edge clearance, we can calculate that we will get 8 parts along the width of the sheet and 8 parts along its length, or 64 parts in total from the full sheet. 2. We can calculate the weight of the sheet at lbs. Assuming a cost of $0.41 per pound for the steel and a value of $0.04 per pound for the scrap left over from the sheet and for the holes cut from the part, we can calculate the cost of a sheet as $ Scrap Value 1. The scrap on the sheet (due to the part to part and part to sheet edge clearance) is the weight of the sheet less the weight of the 64 blanks cut from it or: a. Scrap on the sheet = (64*0.851) = lbs. 2. The scrap from the holes cut in the part is calculated by: a. Scrap from the holes = weight of the holes *number of parts on sheet or: b. Scrap from the holes =.151 * 64 = lbs. 3. Thus, the total scrap produced in the production of this part is lbs. DFMA The Product, Then Lean The Process White Paper, Page 16 of 28

18 4. Given the scrap value of the material, we can calculate a scrap value of $0.966 from the sheet. Material Cost per Part 1. The material cost per part is the cost of the sheet, less the value for the scrap, divided by the number of parts from the sheet or: a. Material cost per part = ( ) ) / 64 = $0.427 Cost of Labor 1. Next, we need to calculate the cost of the time on the laser machine to cut the parts from the sheet. We will refer to this as the process cost per part. 2. According to the database of manufacturing process information in the DFMA software, the speed of travel of the laser through 3mm thick steel is 40 mm per second (3). The correction factor for different thicknesses of materials is given by the following laser cutting speed equation ( 3): wheree S e is the speed throughh 3mm material and h iss the material thickness Equation 2: Laser cutting speed equation. 3. Thus, the speed through the material in this example is determined to be inches per second. 4. Geometry gives us the perimeter of the blank and the perimeter of the holes cut in the part. If we assume a pierce time through the material of 2.5 seconds, then we can determine the time required for the laser to cut the part from the sheet and the holes from the part: a. Process time = * (8 * 2. 5) = 46.5 seconds DFMA The Product, Then Lean The Process White Paper, Page 17 of 28

19 5. Assuming a rate for the laser cutting machines of $72 per hour, we can calculate a process cost for cutting this part from the sheet of $0.93. Piece Part Cost 1. Adding the labor cost per part to the material cost per part we arrive at: a. Piece part cost = = $1.357 Cost of Secondary Processes 1. Now, we need to calculate the costs associated with the secondary operations that will be required to finish the part. 2. Ostwald gives us the following information (4): a. Plugging 4 PEMs (self clinching fasteners) prior to painting takes 0.46 min. b. Removing the 4 plugs after painting takes 0.76 min. c. Handling time prior to painting takes 0.08 min. d. Painting time takes.12 min. 3. Data from DFMA software tells us (3): a. Wash time = * log (part surface area).954 =.927 min. b. Time to press a PEM is 10 seconds. c. The PEMs have an assumed cost of $ We can now pull all this information together and calculate a final cost for this part, assuming a labor rate (burdened) for washing, painting, and pressing in the PEMs of $60 per hour. a. Total time for painting is hours. b. Total time for washing is hours. c. Total time for plugging and removal is hours. d. Total time for pressing in PEMs is hours. DFMA The Product, Then Lean The Process White Paper, Page 18 of 28

20 e. Total cost = (4*0.25) + (0.049 * 60) = $5.297 per part. Given this early understanding of cost and cost drivers, the design team can now start to make data driven cost decisions prior to manufacture, explore all options, and deliver a component design that is the most price efficient. The impact of Lean Manufacturing practices on this particular example may be limited because Lean would simply be attempting to make the chosen, or locked in manufacturing process, more efficient. In many cases, using DFMA to choose another process during the design phase will have far more impact on part cost than late stage efficiency savings on the factory floor. Now that we truly understand all of the costs associated with the manufacture of this part, we can ask ourselves questions about the design and calculate the resulting savings (or lack of savings) associated with each of these ideas: Would replacing the PEMs with tapped holes result in a savings at the given production volume? Would changing the material to stainless steel and using a tapped hole result in savings as a consequence of not having to press in the PEMs and not needing to paint the part for corrosion resistance? Could we injection mold this geometry and use a self tapping fastener? Would the tooling investment for injection molding be offset by any process cost changes? Understanding the costs and cost drivers early allows for an exploration of all options and delivers a component design the first time that is most efficient to manufacture. DFMA The Product, Then Lean The Process White Paper, Page 19 of 28

21 A Case Study To illustrate how to get more from our Lean efforts by first using DFMA to understand product costs and simplification opportunities, let s examine a small, simple product comprised of two pieces of sheet metal that are stamped on turret presses, bent on press brakes, and then fastened together with two rivets using a manual assembly process.. The product is produced from low carbon steel in volumes of 100,0000 parts annually. Part A Rivet (2) Part B Figure 8: Sheet metal assembly (3) The process steps that are involved in the manufacture of each of these piece parts can be modeledd using techniques similar to the ones described in the preceding example. Using those techniques, the following cost information can be determined (Table 2): DFMA The Product, Then Lean The Process White Paper, Page 20 of 28

22 Sheet Metal Assembly Original Costs Cost $ Part A Labor to acquire and insert part A Part B Labor to acquire and insert part B Rivet Labor to acquire and insert rivet Labor to inspect final assembly Total Table 2 Sheet Metal Assembly Original Costs The manufacture of this design will require: 2 turret press setups 2 press brake setups 1 assembly worker and station A hand tool to insert and secure the rivets seconds of assembly labor to assemble Again, it s worth noting the importance of uncovering this sort of information early in the design phase. At this stage, a design team has options without any sunk costs (i.e. cost of the assembly tooling, the assembly station, press brake tooling, etc.) In addition, changes in the manufacturing techniques and the design of the product itself are still on the table and should be explored. Traditionally, however, this design would simply be passed over to the manufacturing team and production would begin. During production, if it is discovered that costs are too high or that cost reduction is required in order to increase profit margins, then techniques like Lean would become the focus. DFMA The Product, Then Lean The Process White Paper, Page 21 of 28

23 Lean Manufacturing If Lean techniques were applied to the design of the sheet metal assembly above, for which costs have been developed, the following steps could be taken to make the process more efficient: Reduce setup times of the presses and brake by training production workers Reduce the amount of scrap (on sheet) by nesting parts or changing to a more appropriate sheet size Reduce the part to part and part to sheet edge clearances to use more of the material Reduce movement of material between stations by rearranging the shop floor layout Employ assembly fixtures to eliminate assembly issues with the riveting of the parts (Neither part has any features to self locate the parts prior to the riveting operation) Given these potential process step improvements, our cost models can be used to re run the cost analysis and determine the potential cost savings from Lean. Doing this, results in the following costs (Table 3): Sheet Metal Assembly Lean Cost Savings Cost $ Part A Labor to acquire and insert part A Part B Labor to acquire and insert part B Rivet Labor to acquire and insert rivet Labor to inspect final assembly Total Table 3: Sheet Metal Assembly Lean Cost Savings DFMA The Product, Then Lean The Process White Paper, Page 22 of 28

24 In the end, as a result of applying Lean methodologies, the bottom line cost savings is $0.194, or a reduction of roughly 11 percent. The changes in cost between the two different methodss of production can be seen in the following graph. It s important to note that there are small reductions in the amount of material and labor costs as a result of this attempt to lean out the manufacturing process. Figure 9: Graph of Lean cost savings DFMA the Product If instead we were to apply DFMA techniques to the design of this product and challenge the designerss to reduce the part counts by applying classic Design for Assembly methods, the product design could look like the following: DFMA The Product, Then Lean The Process White Paper, Page 23 of 28

25 Part AB Figure 10: Redesign of sheet metal assembly into a single part (3) The manufacture of this design will require: 1 turret press setup 1 press brake setup 0 secondss of assembly labor As can be seen from the short list of steps equired for the production of this geometry, any savings that would have been generated as a result of the Lean activity focused on the original design have already been outweighed. Using the same cost analysiss techniques, it can be determined that the cost for the production of the redesigned part is $1.31, or roughly 48 percent less than the original product design and 34 percent lower than the cost of the leaned product design. DFMA The Product, Then Lean The Process White Paper, Page 24 of 28

26 Then Lean the Process In the final step of this process, we should apply Lean Manufacturing techniques to the design of the product that has been through a DFMA analysis. This will allow us to get the most benefit from the tools at our disposal. In doing so, we would take steps to increase processs efficiency, at the same time considering alternative manufacturing techniques. (Progressivee die stamping, for example, would prove to be a lower cost option than stamping and bending.) Figure 11: Graph of Lean savingss coupled with DFMA As is shown in the graph, Lean techniques resulted in a more efficient manufacturing process and additional savings above those generated by the DFMA analysis: a further reduction of $0.35 or 36 percent. (Note that the capital cost of tooling required to produce the progressive die is included.) DFMA The Product, Then Lean The Process White Paper, Page 25 of 28

27 In the end, by first using DFMA to challenge the design and then using Lean techniques to increase process efficiency, we have achieved a cost reduction of $0.987 or more than half the cost of the original designs. $1.947 $0.960 Figure 12: Cost comparison of original design (left) and design resulting from DFMA analysis and Lean Manufacturing (right) (3) DFMA The Product, Then Lean The Process White Paper, Page 26 of 28

28 Conclusion The manufacturing world is changing quickly, product development cycles are shrinking, and companies are facing ever greater pressures to cut costs and increase profits. This perfect storm is impacting new product development hard, as manufacturers and their design teams are being squeezed to deliver high quality, low cost products to the market place in less time. As a result, careful costing of manufacturing alternatives too often falls by the wayside. There is so much general cost cutting activity today that, in some cases, it s coming at the expense of actual design innovation. Budgets for design staff are stagnant or declining. Production has been outsourced to the far reaches of the world. While millions of dollars have been spent, often successfully, on the implementation of Lean techniques, these efforts are occurring too late in the product development cycle. What we have forgotten along the way is that the design of the product itself ultimately controls the total cost. The examples in this paper show product design has a more significant impact on cost than anything that can be done to improve efficiency once the product is in production. DFMA analysis can guide cost reduction efforts early in the product design process, so that product designs are lean from the start and the full potential of Lean thinking can be realized throughout the extended organization. DFMA The Product, Then Lean The Process White Paper, Page 27 of 28

29 References 1. Ford Motor Company. Detroit, MI : s.n : The Plastics Design Forum. 3. Boothroyd Dewhurst, Inc. Copyright 2010 : s.n. 4. Boothroyd, Dewhurst, Knight. Product Design for Manufacture and Assembly. New York : Marcel Dekker, X. 5. Ostwald, Phillip F. AM Cost Estimator Forth Edition. Cleveland : Penton Education Division, Other DFMA reports related to Lean: Copyright Boothroyd Dewhurst, Inc. All rights reserved. DFMA is a registered trademark of Boothroyd Dewhurst, Inc. DFMA The Product, Then Lean The Process White Paper, Page 28 of 28