Using Process Standardization to Achieve Engineering Collaboration

Murugan Krishnaswamy December 23, 2014

StandardizationTwo-thirds (roughly 65%) of all product manufacturers list product cost optimization (PCO) as critical to the profitability of their companies. Design and early manufacturing tasks can contribute to almost 75% of product cost in most markets. It’s during these phases that manufacturers can use practices such as value engineering, lean product development and process standardization to their fullest potential.

While individual PCO solutions like these bring market advantages in their own right, manufacturers who use them holistically to link design, engineering and distribution often see the greatest reductions in product cost for their business.

An example of this is the growth potential possible for companies using process standardization to improve collaboration between engineering teams, and simplify design efforts for complex products that require multiple design, manufacturing and production locations to interact and collaborate across locations.

Standardizing development early on in the manufacturing process makes it easy for companies to improve quality in other tasks; standardization makes everything that comes after it, from part procurement to engineering collaboration, simple.

Standardization to Improve Time-to-Market

Inadequate resources, procurement and process competency are identified by a significant 44% of C-level manufacturing executives as serious, limiting factors for engineering success. For the quickest time-to-market and greatest PCO potential, there is little room for inefficiency in design and high volume production.

Standardization is designed to help companies overcome the market obstacles of high quality, high volume engineering and manufacturing. Standardization can lead to collaborative growth, and improve the way your company deals with:

  • Design trends
  • Technological innovation
  • Market/industry demands
  • Consumer demands
  • Resource procurement and waste

No matter how high quality your products are, or what your current market value is, your products will always fall short of their profit potential if they have poor time-to-market.

How Standardization Works for Your Business

Process standardization makes early manufacturing tasks simple for companies looking to expand their product cost optimization opportunities, and improve the way they track and manage parts during design all the way to production. Once implemented within your manufacturing and design processes, standardization can help your company generate bottom-line RoI through:

  • Reduced maintenance requirements
  • Optimized part ordering
  • Testing and design
  • Mass volume production costs
  • Mitigated manufacturing risk

For optimal operation, it is imperative that engineering operates with enterprise-wide standard processes that help in accelerating product development, reduce defects, rework and thereby product cost to a minimum. Standardization does all of this in a way that also improves time-to-market, with no cost to product quality.

Interconnected PCO: Standardization and Collaboration

The steps you take to improve PCO with early design and standardization will snowball into benefits throughout your production cycle.

Globalized processes made possible through standardization can help your company raise market value by improving:

  • Design continuity and predictable manufacturing; your products will always be produced to the same quality standard
  • Product performance
  • Consolidation efforts within manufacturing processes
  • Design cost efficiency
  • Management across multiple design sites, and with various engineering teams

Broad engineering collaboration can bring over 50% RoI in mere months following implementation. The best collaboration and globalization efforts are those that are complemented by process standardization early on.

If your product revenue is limited by floor-level efficiency or poor collaboration in design through manufacturing, consider process standardization across the value chain across locations; simplifying your parts creation, tracking and maintenance can help you achieve PCO in all areas of your organization.

5-Ways-To-Reduce-Product-Cost

Topics Globalization Product Cost Optimization Time to Market Product Development Solutions Engineering Collaboration