Cataloging Solutions for Products, People, Assets, Software & Services
Early in the design phase of a product, many of the overall lifecycle costs are set. For this reason, it is important that individuals involved in product development are able to ask questions that help to get the best cost possible at the time of launch. Some of the questions that must be asked include:
- Do we have a part that can re-used and still meet my specifications?
- What parts will help me to meet my target cost?
- Which ones do we buy the most of?
- Which supplier is the most reliable?
One of the key ways to reduce cost and risk is by standardizing designs and re-using parts. Part standardization reduces the overhead required to:
- Select and review new parts and suppliers
- Certify and track new parts and suppliers
- Create new design libraries
- Procure, kit, store and manage parts
- Resolve part/supplier issues
- Program manufacturing machines
- Develop manufacturing processes
These costs and risks add up. Back in 1991, Coopers & Lybrand estimated that the industry average cost for introducing a new part into inventory was $9400. More recently, in 2008 the Defense Supply Center, Columbus (DSCC) – a greater than $3 billion per year supply chain depot for the Defense Logistics Agency (DLA) – estimated the cost to be more like $27,000 for government / military programs.