Strategy should be based on
knowledgeable premises and the right goals
. Each knowledgeable premise comes from the wifedom of the
most advanced training and books.
Optimal premises include:
• Thorough Up-front Work, which is the key to:
• Half the time to stable
designs that the desired
functionality can be made at the desired price.
• Plan the product portfolio to be
able build any product family version at the lowest cost
on-demand without inventory.
• Resource Availability is assured by
• Concurrent Engineering,
which needs half the resources at half the budget, as shown by
the graphics in this white paper
Product Portfolio Planning/Rationalization
to rationalize away resource -draining-losing legacy and low-volume
The right goals
based on the following:
• The wrong goal for cost is just “cost,” which is
usually based mostly on parts cost, which often encourages
trying cost reduction after
design which doesn’t work and actually compromised
functionality , quality,
and product development itself as shown graphically in Figure
1.2 in the author’s DFM book.
• The right goal for cost is the absolute lowest selling
price which is based on
cost ” design techniques that can reduce many cost
categories from half to 10 times time less cost, and
away money-losing products that will be replaced with “half cost”
products, platform products, and build-to-order
unfortunately, many more companies compile the wrong
cost goals than the right goals - and worse - have
systems that enforce those goals no matter how much it costs.
• The wrong goals for time are “release date,” arbitrary
deadlines, first prototype available, or “time to market” which
usually means “throw it over the wall on time.” See the
• The right goal for half the
time is time to stable production.
Unfortunately, many more companies compile the wrong
time metric than the time to stable
What the Wong Premise Can do to Strategy
Decades ago, the premise for
product development was that companies had to shoose
quality and time-to-market!
Proponents of this premise
would quip: "we can only have two, " while cynics sais, "maybe that is only
one." One leading management "guru" book confidently said that companies
had to make the "winner's choice about thich one(s) to be good and use as a
The flip side of such faulty think was to
identify which companies were worst at, and then use the only desperate
measures they could think of, like substituting
cheap parts, low-bidding, and
OffshorIng , which is
waste 2/3 of product development
Then 30 years ago, the
first edition of author's DFM book came out with the sub-title that
boldly said: "Optimizing Cost, Quality,
(see cover at right). And this
siite and the lastest 2014 book shows how to do all that.
The General Strategy to avoid an
Similarly, here is here is the general approach to avoid
either/or dilemmas and formulate a both/and strategy.
Gather enough experts to have creating brainstorming sessions to formulate
strategies to implement acceptable solutions.
Be sure to have a facilitator and a broad range of experts that can thoroughly
understands the opportunities and challenges of both “horns of the dilemma” of
Standardization is the
foundation for the following:
- Build-to-Order & Mass Customization, which will
- eliminate Finished-Goods Inventory; see
- ship custom products right-away to customers or stored
- Cut material
overhead by 10 times and easily get credit for that on
- Delivery parts "dock--to-line" without incoming
inspections or inventory.
Design Products for
BTO, and Platforms
products for Lean Production
Design and Build Product
products that can be Built to Order as
Families with plant cell layouts
commercialize products after they are design
STRATEGY TO DESIGN THE BEST EQUIPMENT ELECTRONICS & CONTROLS
resources should focus on what is more important to customers
and get the rest off-the-shelf; see Section 5.18 in the
This strategy assured the best customer satisfaction at the lowest cost
at the highest quality at the fastest time to stable production
For example, a vast array of the following proven off-the-shelf
modules are readily available:
- Processing Printed Circuit Boards (PCBs, sometimes called Single
- Computation PCBs
- Memory PCBs
- Input/Output PCBs
- Communication PCBs
- and all of the cabinetry to house and connect all of the above
boards in standard bus card cages.
A key element to
success is to implement this strategy
before arbitrary decisions preclude the use of Off-the
Shelf parts and systems..
STRATEGY TO DESIGN custom processing equipment
frames can be built can be built automatically on ordinary CNC
machine tools working in flexible cells using
Manufacturing principle and then be assembled rigidly and
precisely by DFM principles.
Again, a key element to success is to implement this
before arbitrary architecture layouts preclude such opportunities.
CONCENTRATED SOLAR POWER
The conventional Premise:
Generate solar "energy," which most focus and examples = electricity
The premise for an
Optimal Solar Strategy:
Concentrated Solar Power “energy” comes in from the Sun as heat
that goes to
1. Electricity Boil steam
to generate electricity at no more than 25% efficiency. At this
efficiency, no form of solar "energy should be used for heat, which
can be generated directly at four times the efficiency.
2. Heat. Use virtually all of it directly as
hear, from smaller fields, to provide
• 60% of industrial energy
consumption* is Heat and
• Virtually all of desalination on
energy consumption is Heat and,
in the future, solar heat could be a large
percentage of that:
• Solar heat is being spoken
as the most efficient way to generate hydrogen,
without generating CO2 as the current petroleum
fuels do when they are burned to generate hydrogen. S olar
hydrogen could be used for all the "hydrogen economy"
opportunities like fueling vehicles.
Solar generated hydrogen can be piped
(or trucked) to factories, processing plants, apartments,
offices, campuses, and even ships that can be
far from Solar Concentrated Solar Heat fields that can
generate hydrogen as the sun shines and then store the
hydrogen (in low-cost tanks) for round-the-clock solar
power. Then hydrogen can then be:
"Burned" directly for heat wherever
needed, with the only "exhaust" being water
Converted to electricity using
an internal- combustion coupled to a generator (again
only exhausting water vapor). This would not need
bulky and expensive steam generators and turbines.
• Provide the Heat to Generate
bio-mass to fuel vehicles, such as
bio-Diesel for trucks, trains, ships, generators, cars. and
bio-mass (non-petroleum) heating "oil"
(Note that bio-mass is considered "carbon neutral,"
since plants generated oxygen the whole time they are
growing, which cancels out the CO2 that is generated when
they die or are burned).
• Provide the Heat to Convert
bio-mass to bio-gas
and feed through existing pipelines, which could be
converted in homes to electricity through fuel-cells
with the majority of the energy that goes to "waste" heat
(inherent in all electricity production) going to space heating
or water heating. This "co-gen" (co-generation)
makes use of almost all of the input energy.
The last scenarios
• Using solar heat to generate electricity at the plant
at 25% efficiency and distributing it over the grid,
which has losses and may have to be built to new solar
fields or upgraded in capacity. This is compared to:
• Using solar heat to process
bio-mass (mostly organic waste) into bio-gas,
pipe it to homes, and then use fuel-cells (widely
used in Japan) to
convert virtually all of that energy to electricity and
Maximizing Solar Heat for Industry.
Concentrated Solar Heat (CSH) needs to be planned and designed to
maximize the amount of industrial heat that comes from the Sun.
Here is what the strategy CSH industry needs to pursue:
Lower the cost to
economically provide enough capacity for large factories and
Make CSH fields small
enough to be sited near all large heat "users."
Don't expect factories and processing plants to locate next
to remote CSP plants.
CSP and CSH that are too large for most industrial
plants or can't be located near enough
Raise the temperature
to provide heat for virtually all
industrial processes and hot enough to generate hydrogen
higher-temperature Heliostat mirror fields as done with
solar furnaces, which currently use two-stage
mirrors. Research has been on single stage heliostats
by focusing mirror "facets" but the extra set of computer
controls was too expensive for CSP or CSH. However,
clever mechanism design could do this at low cost in more
compact fields that generate higher temperatures, as proposed in
Example # 3: Linkage coupling of mirrors for
mirror guidance and 25 times better focus!
The purpose of this logic is for energy planning energy strategies and
generating strategies for product development and commercialization of
all of the above.
All of these
principles on DFM can be included in
class and workshop on DFM
Advanced Product Development class
If you want to discuss Strategy by phone
e-mail, fill out this form:
If your company makes any products
that have similar opportunities, contact Dr. Anderson for your own proposal for
workshops or design studies that will show you how greatly lower the cost of
your hardest-to-design parts. As a Certified Management Consultant (CMC),
Dr. Anderson's high ethical standards
prevent him from doing this for direct competitors, which means the first
to bring him in gets a unique competitive advantage.
To discuss this further, contact:
Dr. David M. Anderson, P.E.; CMC; Fellow, ASME
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