Download - Design collaboration
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OUTLINE
Key sourcing related processes are: Supplier scoring and assessment Supplier selection and contract negotiation DESIGN COLLABORATION Procurement Sourcing planning & Analysis
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DESIGN COLLABORATION
• Integrating supplier in to design phase of Product development.
• Eg: Gold corp Inc. – They collaborated with Two Australian companies for 3-
dimensional depiction of their mines.
– This led to increase in their production rate from 53000 ounces @ $360 an ounce in 1996 to 504000 ounces @ $ 59 per ton in 2001.
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Design collaboration
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Factors to be considered while Design sourcing
• 80% of cost of product is determined during design stage. So active participation of supplier is needed in this stage.
• 50 – 70% of spending at manufacturer is for procurement process (during delivery of outsourced parts). So this has to be lowered.
• Coordination is necessary if dealing with a number of suppliers.
• Mutual understanding with customers.• Manufacturer should act as a design coordinator.
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Mutual Understandings
1. Design for Logistics2. Design for Manufacturability
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1. DESIGN FOR LOGISTICS
• Attempts to reduce Transportation, Handling and Inventory costs during distribution by taking appropriate actions during Design.
• To reduce Transportation and Handling cost manufacturer should convey information's about:– Expected order sizes– Packaging details (to be compact & Easiness for
stacking).
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1. DESIGN FOR LOGISTICS contd……
• To reduce Inventory cost Primary approach is to postponement or mass customization:– Postponement: Aim is to design a production and
production process so that features that differentiate the end product are late in manufacturing Phase.
Eg: Dell designs it’s PC’s after customer order comes. This helps them to lower inventories by aggregating them as components.
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• Mass Customization: similar approach as that of postponement. Here design is so that inventory can be carried in a form that aggregates across multiple end products.
• Customization occurs along following 3 stages:– a. Module customization: Product is designed as
modules. Eg: PC assembly at dell.
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-b. Adjustable customization: All inventory is maintained in a single product. Eg: Washing m/c designed by Matsushita.-c. Dimensional customization: Eg: National bicycle which cuts frame tubing to fit according to size of customer.
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2. Design for Manufacturability
• Attempts to design product for ease of manufacturing.
• Key principles used while designing manufacturability are:– Part commonality– Designing symmetrical parts– Combining parts– Using catalogue part rather than designing new one– Design parts to provide access for other parts and tools.
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Advantages of design collaboration
• Design collaboration can:– Lower material purchase cost– Lower logistic cost– Lower manufacturing cost.– Design collaboration is also helpful for a company
which tries to produce a lot of variety and customization.
– Increases product development time significantly.– Cost decreases by 20%, Quality improves by 30%,
Time to market decreases by 50 %.
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Conclusion
• Design collaboration helps a firm to reduce cost, Improve quality and decrease time to market.
• Ensuring of design for logistics and design for manufacturability by manufacturer.
• To be successful, manufacturers should become effective design coordinators in supply chain.
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THANK YOU