DESIGN COLLABORATION

By: Arun K S

Ist sem M.tech SJCET PALAI

ksarun1987@gmail.com

OUTLINE

Key sourcing related processes are: Supplier scoring and assessment Supplier selection and contract negotiation DESIGN COLLABORATION Procurement Sourcing planning & Analysis

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.

Design collaboration

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.

Mutual Understandings

1. Design for Logistics2. Design for Manufacturability

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).

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.

• 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.

-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.

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.

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 %.

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.

THANK YOU