3 Ways to Reduce Your Manufacturing Costs

In today’s competitive environment, Original Equipment Manufacturers (OEMs) are looking for opportunities to reduce costs while maintaining product quality. While several factors contribute to manufacturing costs, we will focus on three key ways to reduce cost: efficient product design, process automation and consolidation of suppliers.

To save production costs, companies must ensure the product is as easy to manufacture as possible. This will result in more efficient production, better quality and lower cycle times.

Below are two best practices that will help you reduce cost.

Specific design features significantly impact part cost, such as tight tolerances and engraving. These drive up cost and directionally reduce production efficiency.

At RiverSide Integrated Solutions (RIS), we work with our customers to look at design alternatives and ensure any complex or intricate features are “must-haves.” And can and have brought in new technologies or 3D printed solutions to help manufacture for our customers at the lowest cost to them.

Look for opportunities to reduce raw materials, such as replacing solid part sections with more hollow sections, without sacrificing quality or integrity. These design adjustments seem like a slight reduction in material. Still, when multiplied over many production runs, the result can be a significant decrease in manufacturing costs. Additionally, devices that weigh less are cheaper to transport and store, reducing manufacturing costs.

For additional tips on how to design electronics for manufacturability, check out our blog post on confirming printed circuit board integrity.

Automation, and the efficiency it brings, has become a vital component in manufacturing. Automation can occur during the design phase through secondary operations. Companies should work with their manufacturing partner to design with automation in mind. For example, smooth products are more suitable for automated assembly processes.

Also, OEMs should be mindful of assembly orders and ensure that part orientation is consistent. These design considerations help ensure that automated processes downstream are optimized and efficient.

One form of automation is robotic work cells. These robots deliver speed and accuracy, resulting in lower cycle times and higher overall product quality. In addition, with an automated production line, personnel no longer have to execute repetitive, time-consuming tasks. This reduces the risk of human error and allows personnel to focus on more value-added responsibilities.

Additionally, highly-automated processes can be controlled by as little as one operator, further reducing labor and manufacturing costs.

The only constant in the manufacturing world is change. Over time, OEMs often find they have acquired an extensive supply chain that can be challenging and time-consuming to manage. One cost-cutting measure is consolidating your supply base into one or two strategic partners.

When working with a proven manufacturing partner like RIS, customers receive a complete manufacturing solution that strengthens their supply chain. As your one-stop-shop, RIS has the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs.

Additionally, every step in the manufacturing process builds upon the next. Therefore, it is cost-effective to team up with a manufacturing partner that can start and end the project with you – from the concept and design phase through production and secondary operations.

There are many benefits to supplier consolidation including:

By consolidating your supply chain, you will gain purchasing power. This can be in negotiating lower manufacturing and transport rates due to higher annual spending or lower raw material expenses due to more volume purchased.

By consolidating your suppliers, your points of contact are significantly reduced, possibly down to a single point of contact at your crucial manufacturer. This allows for a central, more customized level of support. And this will also inevitably improve and simplify your supply chain communications, resulting in a better final product.

A smaller supplier base is simply more accessible. As a result, there are fewer suppliers to set up and manage within internal systems, and the relationship is easier to manage.