In today's highly competitive market, optimizing product cost enables manufacturing companies gain strategic advantage over competitors. Product cost optimization for manufacturers can be facilitated by improving the way the products are designed, developed and manufactured.
Lean product development makes cost optimization not only possible, but entirely feasible, as it can increase the profitability and time-to-market of products by eliminating wastes and optimizing resources.
Lean development strategies are designed for cost optimization early in the design process, where 65-75% of the total product cost is determined in the initial design phases of the product development cycle. Product cost optimization through lean strategies eliminates non-value added activities, or wastes, as called in the lean terminology; like design defects, over-production, under-utilization of resources, prolonged design time and so on.
Here is an infographic that throws light on simple product engineering approaches that facilitate product cost optimization to reduce overall product cost and realize the maximum revenue potential of theproduct.
We have tried consolidating some of the key approaches in this infographic. Is your product team facing similar challenges? It would be great to hear from you. Please share your thoughts in the comment box below.
Meanwhile, a must read guide on key metrics that you should be tracking in a product cost optimization initiative. Click below to download.