The Design Domino Effect: How Design Decisions Impact Downstream Operations and Final Product Cost!
Thuc "Tucker" Nguyen
Sr. Sales Executive | SAP Alumni | Supply Chain Expert @ Engineering Industries eXcellence
Most people overlook how impactful design decisions are when developing a new product. The truth is, roughly 5% of total New Product Development (NPD) cost goes into design, but these choices influence up to 70% of downstream operations. Simple choices, such as choosing snap-fits over self-tapping screws, can make the difference of thousands of dollars and countless hours. Even with a minimally complex product, hundreds of these design decisions will inevitably affect the final retail price. This blog post will explain how crucial it is to make informed design decisions early on to control subsequent costs, including materials, labor, and overheads.
The Framework of Design Decisions:
To understand how pivotal design decisions are, we first need to unpack what they involve. This encompasses every detail of a new product, from the materials used, assembly processes, aesthetics, and user interaction. These decisions are part of a tight weave, where one thread pulled could unravel a substantial portion of the design and, subsequently, the cost.
The Downstream Domino Effect:
The breadth of impact that design decisions have on downstream operations is staggering. Some of these influencing factors include efficiency in production, ease of assembly, product quality, manufacturing costs, and even the environmental impact.
Exploring Practical Examples:
A real-world illustration of this is the decision between using snap-fits or self-tapping screws. While snap-fits might demand a higher upfront cost due to more complex tooling and molding needs, they save significant labor time during assembly, improve the product's lifetime, and could potentially eliminate the need for screw procurement. Thus, what appears as a minute decision during the design phase can set in motion a domino effect impacting the total cost and operation efficiency.
The Importance of Strategic Design Decisions:
Strategic decision-making at the design stage is key to controlling subsequent costs and enhancing the product's success rate. What may seem like an insignificant choice can dramatically impact not only the manufacturing cost but also the product's functionality, durability, and market acceptance. Thus, the challenge lies in predicting these outcomes and making decisions that will positively affect downstream operations.
Strategies for Effective Design Decision-Making:
There are several strategies product designers can adopt to make more cost-impactful decisions. These include fostering early collaboration between design and production teams, considering alternative manufacturing processes and materials, implementing a rigorous design review process, and leveraging new technologies like simulations and predictive modeling.
But even mountains move, don't they? With the right tools and systems in place, businesses can combat these challenges. One such system is the SAP Intelligent Enterprise. A solution designed to tap into customer feedback and operational data, it offers an insight-driven approach to the product development process. The result? Enhanced profitability and more sustainable outcomes.
SAP offers its customers three options to integrate their product data with the Intelligent Enterprise. The first is through the SAP Enterprise Product Development (EPD) and Engineering Control Center (ECTR) functionalities. This allows for efficient storage (PDM), management (PLM), and consumption of 2D/3D design data across the business enterprise.
The second option involves SAP and Siemens co-developed PLM System Integration (PLMSI) and SAP Teamcenter by Siemens, allowing for direct connection to the SAP Intelligent Enterprise. The third leverages the SAP PDM Integration (PDMI), allowing businesses to integrate their Teamcenter, 3DExperience, or Windchill PLM Platforms directly with the SAP Intelligent Enterprise.
End-to-end business processes, driven by a digital thread and digital twin vision, become attainable results for companies on this journey.
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In conclusion, although challenges abound in NPD, with innovative digital tools (PLM, ERP, CRM, and MES) which are offered by SAP, overcoming these challenges, and achieving sustainable profitability is possible. Product development then becomes not just about survival, but about thriving in an ever-evolving business world.
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