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Manufacturing Cost Reduction With Careful Design Optimization

Wednesday, May 12th, 2010

Material optimization is one way to keep costs low. If a material is harder to locate or its availability is rarer, this will make it more expensive. If a lower cost option can be employed, this needs to be investigated to keep costs of manufacturing at a minimum. Looking at the manufacturing process could yield savings and improvements. If the manufacturing processes are manual, savings could be gained if more automation were used. It may also be found that the system of manufacturing was not accurately tested and too much waste is cultivated, resulting in much scrap, for example. Having too much scrap is a loss of profit where the metal or material could have been used to produce a product if testing were more accurate as was the process of manufacturing. If a company decides to outsource some of its manufacturing to cut costs, one important contemplation is in the quality of the product. If the quality of the product is sacrificed due to the cost reduction, this may not be as helpful in saving money as hoped.

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