The Future of Design to Cost (DTC) Technology
In this short clip from the DFM Summit in March of 2014, Jon Herschtick, Founder of Solid Works and OnShape, Jon Washington, Founder of The Innovation Garage and Ben Gebhardt, co-founder of Refractory all discuss Design to Cost (DTC) technology and how it can help product design and development once adopted and embraced by development teams.
What is Design to Cost?
From its early stages based on analog methods of value analysis and value engineering to the modern version of tools that are computer aided design (CAD) assisted. The proactive Design to Cost (DTC) strategy and business processes enable sales, marketing, engineering, procurement and supply chain teams to proactively work to cost targets in early product design stages.
The models and process can also be further enhanced to work backwards from potential price targets that include labor, profit, and overhead to ensure a product sales price to end customers ensures appropriate margins are harvested well before a product launch.
Key Takeaways from the Design To Cost Technology Conversation
The discussion centers around the evolution of Design to Cost. Jon Herschtick discusses the future concepts of migrating away from big CAD to smaller operations and cloud based CAD tools. In particular, discussing the evolution from on-prem based installations to cloud based services.
Jon also discuses how cloud based CAD technologies will evolve into CAD “App Stores” in which smaller organizations will develop value add applications that can readily be integrated into cloud based CAD. This discussion lays the foundation of the new cloud based CAD offering called OnShape that will soon be on the horizon. The advantages or closed based CAD will include among other elements, easy set-up, seat management, and the ability to easily flex and scale support and demands increase or decrease.
Jon Washington discusses the real world and practical applications of design to cost. A discussed the processes and approaches that The Innovation Garage. Jon also discusses at a high level, the process his team walks through to build part costing and math models for component cost even before a sourcing/procurement RFP exercise takes place. Utilizing DTC methods, The Innovation Garage team can build fully costed bills of material that becomes an input to sourcing and procurement teams to source suppliers and negotiate towards.
Ready to Learn More and Being the DTC Journey for Your Organization?
To learn more about supply chain capability building and real-world success with Design to Cost, visit this case story from The Innovation Garage. Consider reaching out to our team to learn more about the process. In our client sessions, we present high level approaches that will support your organization to sensibly explore and create an effective Design to Cost strategy for your organization.
Take a first step by reaching out to us here, or drop an email to [email protected].
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