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by Dr. David M. Anderson, P.E., CMC
Copyright © 2014 by David M. Anderson
Customers donít care about your cost;
They only care about their cost, which is your price.
So the only "cost" that matters is Total Cost.
HALF COST PRODUCT STRATEGY; See full strategy at www.HalfCostProducts.com
Reducing parts & labor cost
C Optimal product architecture and simple concepts lower all costs
C Design for manufacturability reduces parts, materials, and assembly costs
Reducing overhead costs
C Lean/flow production eliminates setup, waste, and WIP inventory costs *
C Product Portfolio Planning weeds out low-leverage products. Developing products in families lowers product development costs.
C Standardization greatly simplifies supply chain management and lowers material overhead costs
C Design for quality & process controls can virtually eliminate quality costs
C E-commerce and internet transactions reduce the cost of sales and product management while expanding sales inexpensively *
C Build-to-Order eliminates finished-goods inventory and most distribution costs while satisfying customers
C Mass Customization reduces customization and variety costs
* for more on Lean Production and E-commerce, see www.build-to-order-consulting.com
These practical methodologies are taught through Dr. Anderson's in-house seminars and implemented through his leading-edge consulting.
With All The Money Saved . . .
You can send the cost savings straight to the bottom line
Or, you can lower the price enough to grow sales and still make a lot of money
Or, you can invest in the business
Or, you can invest in other businesses and cut their costs in half
Or, you can launch new ventures
Or, you can retire debt and buy back stock
To start with, you can apply the cost savings of early projects to fund
Dr. Anderson is a California-based consultant specializing in training and consulting on build-to-order, mass customization, lean/flow production, design for manufacturability, and cost reduction. He is the author of "Design for Manufacturability & Concurrent Engineering; How to Design for Low Cost, Design in High Quality, Design for Lean Manufacture, and Design Quickly for Fast Production" (2004, 432 pages; CIM Press, 1-805-924-0200; www.design4manufacturability.com/books.htm) and Build-to-Order & Mass Customization, The Ultimate Supply Chain Management and Lean Manufacturing Strategy for Low-Cost On-Demand Production without Forecasts or Inventory" (2004, 520 pages; CIM Press, 1-805-924-0200, www.build-to-order-consulting.com/books.htm). He is currently writing the book, "Half Cost Products: How to Develop, Build, and Deliver Products at Half the Total Cost." He can be reached at (805) 924-0100 or firstname.lastname@example.org; web-site: www.build-to-order-consulting.com.
Dr. David M. Anderson, P.E., CMC
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copyright © 2014 by David M. Anderson