This category features blog posts about tips for cost management when manufacturing a product.
People are always getting attracted by super low-priced products in stores like IKEA, Costco, Walmart, and even in some corner stores. Buyers are shopping around the world to get products built at super low cost. To most businesses, a super low price tag is one important ingredient to a killer product in the marketplace. What is the secret to creating a product with a super low price tag?
Growing your business takes careful planning. If you’re like many small and medium-sized businesses, allocating financial resources to cover set expenses, investments and finance growth strategies is where creativity and resourcefulness are needed.
It’s likely you have a list of growth initiatives that you believe will carry you to the next level. Top growth-focused projects for businesses at this stage include:
Identifying the right resources to fuel your expansion can ensure you get and stay on a growth trajectory. But how do you do this? Continue reading “The Financial Options for Growing Your Business”
Conceptualized in the 1900’s and grown during WWII, concurrent engineering (CE) has been the most competitive operation model used by some leading industries. Since the 1980’s, the semiconductor industry has been using CE to achieve superb speed to market for both IC chips and equipment manufacturing. However, due to restrictions in both resources and operational capabilities, only a few of business in other industries are able to practice this model. From design to manufacturing has always been a major challenge – implementing this at a global scale only exacerbates the situation. With 20 years of development experience and successes, E-BI can help clients to ramp up their Global Concurrent Engineering (GCE) workflow seamlessly using its artificial intelligence based global supply chain management system (GSCM), cross-functional specialty engineering teams and Star Factory Alliance. The GCE model will not only shorten your time on proving a new product’s manufacturability during the NPI stage, but also achieve the fastest speed to market.
Continue reading “Cutting New Product Costs By Up to 80% with GCE”
Low price has always been the number one goal for a buyer. Quality has been a fear factor behind failure of a so called lowest price. The service level, such as response speed to an urgent demand or change, is usually ignored at the time of negotiation. While a decision maker understands that his/her business success depends on the optimization of these three factors, many decision makers fail to achieve the right optimization of the complex decision making process of choosing the right partner. An accurate price manufacturing quote should be sustainable for your type of industry and business model that can position your product as the leader of your competitive area, when an operating situation changes with time.
Continue reading “What It Takes to Get an Accurate Manufacturing Quote”
Design-to-cost (DTC) is one of the most common strategies for cost reduction during product development and manufacturing. Cost is an important parameter to consider in even the earliest designs of a product. It is easier to design costs “into” a product, rather than remove them later. By making the right decisions in a design or concept early on, extra unnecessary costs that may be incurred by a design change later on can be avoided.
The concept of DTC extends beyond just design, to product specifications and the complete development cycle. DTC addresses costs including those labeled as recurring production costs, non-recurring costs, product costs, and product price or acquisition costs. For example, any environmental factors, expected maintenance that will be needed, or any other part of the process will be taken into account. However, DTC does not necessarily mean a product will automatically reach a defined target cost. It simply is about considering cost as a design parameter during product development.
Continue reading “10 Factors to Consider in a Cost Reduction Strategy”
For contract manufacturing projects that aim to produce a product, project cost includes the overall works in design, engineering, manufacturing, quality, project management, and supply chain management. Within each of these categories, work can be divided into many sub-sectors with even more specialty tasks that intertwine with each other. Management teams try to put a budget on the project based on their best estimate. However, there are still many gray areas in the details of each task where decisions need to be made based on skills and best known methods (BKM). Without doing so, this is where the Snowflake Effect can be seen.
Continue reading “Controlling the Snowflake Effect on Project Cost”