6 Cost-Saving Strategies that Raise Value During Hardware Development
High value and low costs are crucial qualities for a successful product because they directly impact customer satisfaction and market competitiveness. High value ensures that the product meets or exceeds customer expectations, offering desirable features, quality, and benefits. Low costs, on the other hand, make the product more accessible and affordable, attracting a broader customer base. Together, these factors create a compelling value proposition, making the product more appealing and increasing its potential for widespread adoption and profitability.
Finding the perfect balance of high value and low costs begins with a knowledgeable team. Good engineering and design services can implement several strategies that find value opportunities and eliminate unnecessary costs throughout the production process. Ultimately leading to strong brand loyalty and a sustainable competitive advantage in the market.
01: Create a Foundation of Feedback
When developing a product, it is important to start with a solid foundation. By conducting market research that includes user feedback, companies gain insights into consumer preferences, emerging trends, and competitive landscapes. This information helps firms identify the most desirable features to target throughout the design process. Finding these key attributes early allows companies to allocate resources efficiently, ensuring the project has the best foundation for success.
User feedback can be gathered through surveys, focus groups, and direct customer interactions. Each one provides unique insights into the product's usability and identifies pain points. Addressing these issues early can optimize their offerings, reduce wasted efforts, and achieve cost efficiencies. This understanding also leads to more effective solutions that resonate more deeply with target audiences.
Example:
Apple Inc. regularly utilizes market research and user feedback to refine its products. For instance, with the development of the iPhone SE, Apple identified a market segment that preferred smaller, more affordable smartphones with robust performance. By focusing on this specific customer need and incorporating key features from its flagship models, Apple was able to offer a high-value product at a lower price point, appealing to budget-conscious consumers and expanding its market share without significantly increasing production costs.
02: Design for Manufacturing (DFM)
DFM advises simplifying product designs to decrease the number of parts and assemblies, making products less expensive. Emphasizing using standard components over custom ones whenever possible can also lead to significant cost savings, as standard parts are easier to procure.
By focusing on creating designs that use low-cost materials and processes upfront, and engaging with hardware manufacturers early designers can generate concepts that embody the features and aesthetics most important to the users. These measures not only decrease product development costs but also enhance product reliability and quality, resulting in a more competitive offering that provides greater value to customers.
Example:
Toyota's implementation of DFM principles in its vehicles production, particularly with the Toyota Production System (TPS), is a notable example. By designing cars with fewer, more modular parts, Toyota has streamlined assembly processes and minimized material waste. This approach has led to significant cost savings and improved vehicle quality, allowing Toyota to offer reliable and affordable cars that maintain high standards of performance and durability. The efficiency and effectiveness of their manufacturing processes have contributed to Toyota's reputation for producing high-quality, cost-effective vehicles.
03: Design for Assembly (DFA)
DFA aims to reduce assembly complexity and design quick and straightforward products. By designing components that are easy to align, fasten, and fit together, DFA minimizes the time and effort required for assembly. This leads to shorter production cycles, reduced labor costs, and fewer assembly errors, resulting in reduced defects and rework.
Similarly, applying lean manufacturing principles can identify and eliminate processes that do not add value, but rather promote efficiency and reduce waste. This includes considering every step of the process to optimize workflow and shorten production timelines. This approach not only cuts down on material and labor costs but also enhances product quality and customer satisfaction by ensuring that products are delivered quickly.
Example:
Dyson's design of the Airblade hand dryer is a prime example of DFA in action. The company focused on creating a simple and efficient assembly process by minimizing the number of components and standardizing fasteners. This design approach reduced production complexity and assembly time, resulting in lower manufacturing costs. The streamlined design also improved the product's reliability and ease of maintenance, contributing to its high value and market success.
04: Use Sustainable Materials
Selecting materials is an essential aspect of a design that requires a careful balance between cost, performance, and durability. An additional consideration when selecting optimal materials is whether to explore environmentally friendly manufacturing methods. The use of sustainable materials in product design can increase a product's value by promoting environmental responsibility. By choosing eco-friendly materials, companies can appeal to environmentally conscious consumers, enhancing the product's marketability and brand reputation.
Sustainable materials that come from renewable resources or recycled content can also reduce material costs and dependence on non-renewable resources. These materials are often lighter and more durable, leading to reduced transportation costs and longer product lifespans. Overall, sustainable material use can result in cost savings, improved product performance, and a stronger value proposition.
Example:
Patagonia is a leading example of a company that uses sustainable materials to enhance product value and reduce costs. The company incorporates recycled polyester, organic cotton, and other eco-friendly materials into its clothing lines. By doing so, Patagonia reduces the environmental impact of its products and appeals to eco-conscious consumers. The use of recycled materials also helps lower raw material costs and contributes to the durability and quality of the garments, providing customers with long-lasting products. This approach aligns with Patagonia's brand ethos and enhances its value in the eyes of its target audience.
05: Identify Potential Failure Modes & Design for It
Designing for failure involves integrating durability tests and stress analyses into consumer product development to ensure products can endure the expected operational and environmental stresses. Considering potential failure modes and incorporating redundancies where needed can greatly increase product reliability and minimize the chances of untimely failures. This proactive approach reduces potential warranty and service costs. It also minimizes the risk of product recalls and damage to the brand's reputation.
Advanced engineering tools like Computer-Aided Design (CAD) and simulation technologies greatly benefit design testing and optimization in the pre-production phase. For example, Finite Element Analysis (FEA) can simulate how parts will behave under various conditions, aiding in designing for reliability and reducing unnecessary material use.
Example:
Sportswear companies use FEA to optimize the design of their athletic shoes. By simulating various stress scenarios on the shoe's structure, the design team could identify potential failure points and areas where material could be optimized. This analysis helps them create a more durable and lightweight product by strategically reinforcing high-stress areas and reducing unnecessary material in low-stress regions.
06: Consider the Full Life Cycle
Considering the overall lifecycle costs, which include production, assembly, maintenance, and disposal expenses, is vital. Designing with the entire product lifecycle in mind can uncover cost-saving opportunities. Planning for how the product will be disassembled and recycled can lower disposal fees and lessen environmental impact.
Example:
Tesla has integrated comprehensive lifecycle planning into its products. To prolong the use life of their vehicles they design modular components that are easy to upgrade and repair. They also consider end-of-life by using recyclable materials and offering a battery recycling program. Both allow them to reclaim valuable materials, reducing environmental impact and lowering costs of sourcing new raw materials.
Conclusion
Implementing these strategies can harness good engineering and design services to increase the value of hardware products and significantly reduce manufacturing costs. At Acorn, these services and more are included in our proven product development process. Fill out the form below telling us about your hardware development project and get a free consultation. Increasing value and reducing cost starts today!