How can you apply design of experiments to reduce costs?

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Design of experiments (DOE) is a powerful tool for industrial engineers who want to optimize processes, improve quality, and reduce costs. DOE is a systematic method of planning, conducting, and analyzing experiments that vary multiple factors simultaneously. By using DOE, you can identify the most influential factors, determine the optimal settings, and evaluate the interactions among factors. In this article, you will learn how to apply DOE to reduce costs in four steps: define the problem, design the experiment, conduct the experiment, and analyze the results.

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Ahmad Ziaee, M.Sc., Ph.D.

API Chemist at Cook medical | CMC | Pharmaceutical Engineer | Drug eluting stents | Combined medical devices
Hamdy Hammam

BIM Management | Digital Delivery | AEC

1 Define the problem

The first step of applying DOE to reduce costs is to define the problem clearly and specifically. You need to identify the objective, the response variable, the factors, and the constraints of the problem. The objective is what you want to achieve, such as minimizing waste, maximizing throughput, or reducing defects. The response variable is the measurable outcome that reflects the objective, such as cost per unit, cycle time, or defect rate. The factors are the controllable or uncontrollable inputs that affect the response variable, such as temperature, pressure, or material type. The constraints are the limitations or requirements that restrict the range of the factors, such as safety, budget, or customer specifications.

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Hamdy Hammam

BIM Management | Digital Delivery | AEC
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To apply (DOE) for cost reduction: Define the cost-related problem. Identify the factors impacting costs. Determine the different levels for each factor. Design an experiment to explore factor effects. Conduct the experiment and collect data on costs. Analyze the data to identify significant factors. Optimize factor settings to minimize costs. Validate and implement the optimized settings. Monitor the process and refine as needed.

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2 Design the experiment

The second step of applying DOE to reduce costs is to design the experiment that will test the effects of the factors on the response variable. You need to select the type, the level, and the number of factors, as well as the experimental layout and the sample size. The type of factors can be categorical or numerical, and the level of factors can be discrete or continuous. The number of factors depends on the complexity of the problem and the resources available. The experimental layout is the arrangement of the factor combinations that will be tested, such as full factorial, fractional factorial, or response surface designs. The sample size is the number of replicates or runs for each factor combination, which affects the precision and accuracy of the results.

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Ahmad Ziaee, M.Sc., Ph.D.

API Chemist at Cook medical | CMC | Pharmaceutical Engineer | Drug eluting stents | Combined medical devices
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DoEs can be run in two steps or one step. In one step DoE, you can define the critical factors, find correlations to the responses and optimise the process all in one step. This approach can be used in smaller studies with smaller numbers of factors and responses. Two-step DoE can be used in larger studies (especially when more resources are available). The first step involves a larger number of factors and responses to define critical process parameters. These critical parameters can be used in the next step to define the correlations between the factors and responses using statistical analysis. Moreover, at this stage process optimisation can be performed with more accuracy and precision due to a higher number of experiments.

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3 Conduct the experiment

The third step of applying DOE to reduce costs is to conduct the experiment according to the design. You need to collect the data for the response variable under each factor combination, while controlling the sources of variation and error. You also need to ensure the validity and reliability of the data by following the standard operating procedures, using calibrated instruments, and checking the assumptions of the statistical methods. You should also document the experimental conditions, the observations, and any deviations or anomalies that occur during the experiment.

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4 Analyze the results

The fourth step of applying DOE to reduce costs is to analyze the results of the experiment using statistical tools and techniques. You need to summarize the data, perform hypothesis tests, calculate effect sizes, and plot graphs to visualize the relationships among the factors and the response variable. You also need to interpret the results, draw conclusions, and make recommendations based on the objective of the problem. You should also evaluate the validity and reliability of the results by checking the residual plots, the goodness-of-fit measures, and the confidence intervals.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you apply design of experiments to reduce costs?

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1 Define the problem

2 Design the experiment

3 Conduct the experiment

4 Analyze the results

5 Here’s what else to consider

Industrial Engineering

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How can you apply design of experiments to reduce costs?

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1 Define the problem

2 Design the experiment

3 Conduct the experiment

4 Analyze the results

5 Here’s what else to consider

Industrial Engineering

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