Throughout the product lifecycle, whether it’s during design and development, engineering or manufacturing/distribution, there are innumerable contributors to cost. Controlling these costs intrinsically, such as during data exchange and lifecycle collaboration, is the key to profitability in many industries.
How efficiently are you exchanging data within your facilities, and between various engineering teams, stakeholders and vendors involved?
These are important things to consider when evaluating your data systems and communication practices, as they are directly tied to cost. In many cases, standardizing the most efficient systems throughout an enterprise provides these savings, and helps give companies the edge they need in competitive markets.
Our most recent eBook, “Product Cost Optimization Through Process Optimization,” serves as an informative guide on best practices and solutions for curbing high process costs, at all levels of the product lifecycle.
How Process and Data Decisions Affect Total Product Cost
For operations with complex engineering, or with many exchanges throughout the product lifecycle, consistency is key. This is where PCO practices like data system standardization and engineering collaboration can offer the greatest benefit.
How efficiently and consistently you are able to push products through the product lifecycle is a major factor in gauging time-to-market. Data exchange inconsistencies between product designers, engineering teams, vendors and the like can be a recipe for disaster in terms of later cost. Wasted labor, material reworking costs and strenuous downtime can entirely compromise a product’s profitability.
During product development and throughout the entire lifecycle, there are many ways that cost can inflate beyond what is sustainable. This includes:
- Process waste, as the result of rejection, overproduction, non-utilized resources and excess processing
- Unreliable data exchange across multiple departments, systems and sites, increasing vulnerability to human error
- Poor management and collaboration practices, which rapidly consume time and budget
Access Our Guide on the Process Standpoint
Engineering practices throughout the product lifecycle and cost optimization are intertwined; from a process standpoint, data exchange and full engineering collaboration can provide valuable flexibility for businesses to maneuver within price sensitive marketplaces.
As you’ll learn in our guide, cost optimization is less about opening new revenue streams, and more about increasing profit margins by lowering time-to-market, or eliminating inefficient processing practices.
Download the guide to get a more in-depth look into common process cost elements, as well as ways certain PCO practices can help you address these costs directly.