What do you do if your manufacturing engineering costs are skyrocketing?

Embrace Lean Principles! Lean Manufacturing lowers operation cost by eliminating waste, optimizing flow, and improve overall efficiency. One practical example of implementing Lean Manufacturing principles is the adoption of a JIT inventory system in an automotive assembly plant. Instead of stockpiling large quantities of parts, the plant receives components from suppliers precisely when needed for production. This reduces inventory holding costs, minimizes waste associated with excess inventory, and enhances overall production efficiency.

In most of my case studies as working as Interim General Manager in Chinese factories, I have seen high engineering costs by outsourcing of repairing equipment and products. We achieved significant lower costs by installation of an inhouse workshop, responsible for repairing and maintenance. Including warehouse for spare parts. A positive side effect: workers do the job even faster than external suppliers. To install this new department is mostly against the interests of engineers who have good relationship with their suppliers and have certain benefits. So, you need to install proper KPIs to compensate their losses by professional performance figures. It is not an easy job, but at the end the company and all employees will win.

If manufacturing engineering costs are skyrocketing, I'd conduct a thorough analysis to identify inefficiencies and cost drivers. This might involve scrutinizing supply chains, optimizing production processes, and renegotiating contracts with suppliers. For instance, Tesla faced this issue with their Model 3 production. They addressed it by streamlining their assembly line, reducing complexity in design, and investing in automation, resulting in improved efficiency and cost reduction.

"To address skyrocketing manufacturing engineer costs, I would conduct a thorough cost analysis, identify inefficiencies, streamline processes, implement automation where feasible, negotiate vendor contracts, and invest in training programs to enhance team productivity and cost-effectiveness."

Look for hidden inefficiencies, whether it be in process, supply chain, or other areas. Don't be afraid to break seemingly complete operations down to their smallest elements to evaluate their effectiveness.

Please test before invest Most important think is to test, to be sure that the innovation or the idea really improve your problem in your manufacturing, otherwise you waist your money.

Investment is done by the management but creating real value from that always depends on how prudent you use that technology to get the best out of it. So monitoring is a very important part after that sustainability can be achieved for long terms.

IIOt and digital technologies like Digital twins are costly and mostly in developed industrial worlds.While these are imp in reducing wastage, visibility and boosting productivity, there are other basic cheap investments of knowledge taht can be implemented through automated line ,cobots, conveyor warehouses,Agvs,etc.Robotics and 7 axis machines are also important in large scale production but largely we need to invest its tooling also.So we need skilled engineers to work with these technologies.Additiv manufacturing technologies are necessary for consolidating into fewer functional parts and save timing in machines available.Lastly, innovation shd b from ideas generated in a skillful manner thru SMED,Tooling,DFMA,generatv design for 3DP.

Constantemente es estar atento a la nueva tecnología. En producción sistemas automatizados te reducen personal que anteriormente estaban en los puesto de trabajo operando manualmente las máquinas. Los resultados son registrados y para su análisis alimentas modelos de simulación o gráficas que permiten visualizar y predecir mejoras en el proceso de producción y sus parámetros de operación. Finalmente, tus proveedores internos y externos deben darte información para la optimización de tu proceso eficientemente y económicamente.

Eu gosto muito de estar atento e investindo em novas tecnologias, porém n?o esque?am de manter o simples sempre bem tratado, os poka yoke por exemplo, outro erro fatal, n?o dar as devidas aten??es aos elementos de fixa??o, disponibilidade de embalagens, muitas das perdas ocorrem em fatores muito simples como esses por exemplo.

if manufacturing engineering cost are skyrocketing. in such case, we will analyze the resources available how to utilize optimum utilization of resources . The highly efficient methodology will be adopted. the supply chain play a major role to reduce the cost of operation. so, we will adopt the cost reduction methodology and minimize cycle time of operation to reduce its cost and improve efficiency

Optimize supply chain and control inventory r essential. Manufacturing is a tedious job at times require lot of components so inventory is important and needs optimized overlook.

Lo ideal es tener tu planta de producción con la capacidad adecuada para mantener inventarios de productos que se requieren para la venta y tener el tiempo disponible el mantenimiento de la maquinaria. En el mediano y largo plazo habrá los proyectos de crecimiento en base a los planes de ventas y cumplido los tiempos de vida de los equipos, su reemplazo por versiones mejoradas y actualizadas. Si tienes la utilización de planta al 100%, OEE al 85%-90% y sin roturas de stocks, las plantas están correctamente programadas.

Realmente esse é um ponto forte, tanto para reduzir custos quanto ao analisar os tempos de faturamento poder trabalhar com o investimento por parte da cadeia de suprimentos com faturamento dilatado ao seu faturamento junto ao seu cliente.

Different tool sets are available to the market these days for any organization to use. Whether its PDCA or Lean or any proprietary methodology, it should be able to be used to achieve Improvement. However using these tool sets, one needs to be focused on which area needs improving. Whether its Takt Time, Manning, Cost or others, that area current dataset has to be extracted. Especially for CI, the process has to be stable before Kaizen can be implemented. With the right focus and tools, improvements can be achieved

Correct, to reduce engineering cost, need to know which processes that contributing to higher cost. If we just follows comment from supplier, definitely they will come out with higher cost that will be benefit to them. We can apply VSM system to identify which processes having NVA jobs, from there we can improve current process become faster lead time and shorter route. Costs for logistic parts can also be reduce by sourcing to other Licensed OEM company

El pensamiento esbelto y la mejor continua es lo que ayuda a todos los procesos a reducir costos y a mejorar tiempos de fabricación, Se tiene que hacer una reingeniería de los procesos que tienen el costo elevado y evaluar si hay que mejorar tecnología, capacitación, ambiente, materiales, etc. Ahora existen muchas metodologías para poder ahorrar, Inclusive Existen equipos externos que se encargan de realizar esos análisis y tienen más experiencia en determinar áreas de oportunidad si te permiten acceder a estos recursos también sería un importante.

if increase, reduced then, through value engineering project, increase life span, shelf life, increase all inclusive part of the machine, then ofcourse reduced wastages, price nego, there are lotsa options, which we dont need to jeopardised the product quality

Collaborative CI that involves a cross functional team, yields unprecedented and powerful ideas. Therefore I believe continuous improvement and training underpins a companies potential to grow and outpace its competitors.

Usem bem seus fornecedores externos e internos também, vocês est?o no mesmo lado de interesse, se você conseguir melhorar seus custos, por vezes aumenta suas vendas e ai eles s?o beneficiados diretamente. E ainda normalmente por serem fornecedores n?o há custo de investimento.

Be open minded and talk with your suppliers and customers Do cooperations with other companies, you cans know and do everything by your own. And test fail, test fail test fail ……

Una colaboración externa que da bastantes resultados positivos es el Benchmarking: comparar tus resultados operativos con los resultados operativos de otras empresas similares, comparando tus costos de mano de obra, energía, insumos y analizar las desviaciones negativos (en contra), porque la competencia gasta menos energía: sus calderas fueron cambiadas el a?o pasado y nosotros ya cumplen 15 a?os. Otro aopoyo de terceros es que no me queda un repuesto importado que demora 2 semanas, pero la empresa vecina tiene un repuesto y nos lo va a prestar. Hoy por ti, ma?ana por mí, de la forma más desinteresada y solo por una buena política de vecino industrial.

The collaboration and external support - to minimize the cost and increase the revenue , the option for external collaboration can be economical and productive . The different set of collaboration can be considered and selection of effective collaboration by choosing experts or consultants play positive impact . the opportunities cost and market place and advancement of competitive advantages will involve the product development, customer oriented design framework and launch of new product can improve customer reach and convert into businesses.

Sensitize people regarding costs. - Manufacturing is becoming highly competitive in terms of cost , people at all levels in organization should be aware about cost reduction initiatives. - Each and every value addition activity should be measured in terms of cost and ideas should be welcomed to reduce them without compromising quality.

Prioritise and Do all of the above accordingly Until you get the results ****************************************************