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HOW TO BUILD ANY PRODUCT IN A FAMILY ON-DEMAND

and reduce cost down to1/10 of these costs:

The forthcoming 2019 Second Edition of the author's DFM Book will show how building families of products on-demand can cut this much overhead costs:


 Cut material overhead cost to1/10 for standard parts based on surveys of Procurement managers:
        See opening page of Chapter 5: “Standardization” in the definitive book on Design for Manufacturability

Cut  raw materials inventory down to /10 cost using:
        Spontaneous Supply Chains,” Chapter 7, in the 512 page BTO book which starts with a 60 page Summary

 Cut work-in-process (WIP) inventory Cost  to 1/10 the usual cost ,  which can cost more than profits! See:    “Design for Lean and Build-to-Order:” Chapter 4 in the author's DFM book, now translated into Chinese

Cut finished goods inventory Cost  /10 of Mass Production cost by building all platform products to-Order "on-demand" without needing forecasted inventory. : See:
        http://www.build-to-order-consulting.com/  or
        "Build-to-Order & Mass Customization," the most thorough book written on Build-to-Order

* See Overview of Inventory Reduction article at:
            http://www.build-to-order-consulting.com/inventory_reduction.htm 
 

With  family products savings 10 times these overhead costs, those family products
could come close to making the case they not be charged any overhead charges at all!

When the rest of the products can be build to-order in families,
then a total-cost based cost system will automatically assign all products proportionally less overhead cost.

 

HOW TO DESIGN AND BUILD PLATFORMS OF PRODUCT FAMILIES

A "platform" is not just adjacent pages in a catalog or on web-site

Product families must be based on all four of the following  criteria:
 

1) customer/marketing feasibility, with the focus on profitability over completeness
2) operational flexibility, so any variation can be built without delays, onerous setup costs, or inventory carrying costs, ideally built on-demand
3) supply chain responsiveness, so family variations will not have to wait for parts and materials to be delivered, and distributed, and
 4) design versatility to enable the above

IMPLEMENTATION APPROACH

 

a. HOW TO BUILD PRODUCT FAMILIES FLEXIBLY

 

 

 

 

 

FLEXIBLE MANUAL ASSEMBLY

B. SPONTANEOUS SUPPLY CHAINS

Note that when asked to deliver parts “on demand,” suppliers
will probably try to ship from their inventory

 

 

C.  DESIGNING PRODUCT FAMILIES

So if the existing production operations and supply chains can not quickly
and cost-effectively build product families, the product families and their processes
need to be concurrently engineered to make the product family strategy viable.

 

 

 

 

For more on BTO&MC principles see the book, Build-to-Order & Mass Customization

   For an illustrated example of cellular manufacture for turned parts, go the bottom of the page at the Flexible Manufacturing page at    http://www.build-to-order-consulting.com/flex-mfg.htm 

 

Right-sized machine can form complete mini-lines, in which no changeovers
are needed.  The economics are different with versatility and setup elimination 
stressed over utilization.

POSTPONEMENT

     Postponement is a mass customization technique that is applicable for certain products that can have their variety postponed until just before shipping.  The factory builds basic “vanilla” platforms and quickly adds “flavors” upon receipt of order. 
     Postponement is most suitable for product architecture that has a major platform part can be built without variation and then customized by various adjustments, configurations, or bolt-on or plug-in modules. 

Extending Product Families with Mass Customization

Mass Customization is the ability to quickly and efficiently build-to-order customized products.
       It uses all the techniques presented so far for the build-to-order of standard products and extends that to custom products.
     These products can be customized for individual customers or niche markets, such as versions optimized for certain market segments, industries, regions, or countries.

 

Synergies of Mass Customization and Product Families

    There is a natural synergy between product families built to-order and mass customization.  They share the same flexible operations and spontaneous supply chain. 
Product families and mass customization operations are equally efficient and very complementary,
    Adding mass customization to a product family strategy can push the combined volume over the  threshold that may be necessary to justify these implementations.
Thus, mass-customized product families would be more like to be approved and succeed. Copyright 2019 by Dr. David M. Anderson, Fellow, ASME

 

These are the general principles. Pass around this article or URL to educate and stimulate interest

In customized seminars and webinars, these principles are presented in the context of your company amongst designers implementers, and managers, who can all discuss feasibility and, at least, explore possible implementation steps

In customized workshops, brainstorming sessions apply these methodologies to your most relevant products, operations, and supply chains.

 

Call or email about how these principles can apply to your company:

Dr. David M. Anderson, P.E., CMC
fellow, American Society of Mechanical Engineers
www.design4manufacturability.com
phone: 1-805-924-0100
fax: 1-805-924-0200
e-mail:
anderson@build-to-order-consulting.com

copyright © 2021 by David M. Anderson

Book-length web-site on Half Cost Products: www.HalfCostProducts.com

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