How do you go about from designing to manufacturing and what should startups be watchful of

1. Prototype To Production
A DFM Perspective
Anand Kumar Padmanaban
Certified Manager (License # 12078)
https://www.linkedin.com/in/anandkumarpadmanaban
Email : anand@elado.co.in

2. Stages of the startup lifecycle
validation product
development
commercialization
scale
You Are Here

3. Two ThinkingSystems
Kahneman. Thinking, Fast and
Slow
System 1:
Fast, effortless, pattern
matching to norms
System 2
Slow, effortful, logical
System 1 runs the show
by default
We need to consciously
activate our system 2

4. We Are NOT Rational
http://en.wikipedia.org/wiki/List_of_cognitive_biases
¤⁄ Anchoring
¤⁄ Availability
¤⁄ Bandwagon
¤⁄ Belief
¤⁄ Cheerleader
¤⁄ Clustering
¤⁄ Confirmation
¤⁄ Congruence
¤⁄ Contrast
¤⁄ Consistency
¤⁄ Expectation
¤⁄ Framing effect
¤⁄ Gambler’s
¤⁄ Heuristic
¤⁄ Information
¤⁄ Observation
¤⁄ Priming
¤⁄ Status Quo

5. New Products Today
$
!!!!
BIAS
RISK

6. ¤⁄Steve Blank: 4 Steps to the
Epiphany, Startup Owners
Manual
¤⁄Eric Reis: Lean Startup
TheProductLearning Loop
Ideas
Build
Product
Measure
Data
Learn
Experiment
Hypotheses
Pivot?

7. A Revision : The Product
Building Part

28. Validating Your Business Model
- Hypotheses

29. Objection!
“If Ihad asked people what they wanted,
they would have said, ‘faster horses.’”
–Henry Ford

30. Objection!
“If Ihad asked people what they wanted,
they would have said, ‘faster horses.’”
–Henry Ford
Don’t ask. Findout.

31. Identify& Rank Assumptions
1. Problem/
Customer /Solution fit
2. Product/market fit
3. Scale
Risk
Uncertaint
y Risk
Uncertaint
y
Risk
Uncertaint
y

32. Create The Hypotheses
“Ifyou torture the datalong enough, itwillconfess.”
–Ronald Coase
Economist, University of Chicago

33. Falsifiable Hypotheses
Specific, repeatable
action will result in
Expected,
measurable customer
action
• Changing to focus on a
subscription based model
will result in
A 10% increase in
customer conversions

34. 29
Alternate Background, Dark,Bullet,
full screen graphic
Picture: “no single bigbets”
No big bets

35. 30
Alternate Background, Dark,Bullet,
full screen graphic
Picture: “good experiments are additive, not
monolithic”
Be Additive, not monolithic

36. Business Model Validation

39. The Validation Test

40. Innovator’s Canvas Template

41. Validation Steps

42. Ideas Validation

43. Never Stop Experimenting

44. GETTING INTO PRODUCT
DEVELOPMENT

45. Minimum Viable Product Development

46. Goal1:GetYour ProductDeveloped
• A significant effort
• Requires lots of people,
time, and money
• If you think you are
starting with a developed
product that needs to be
perfected
– You are Wrong
• Product Development is
hard work that requires
focus and structure
• Most get it to 80%

47. Goal2:Make YourProduct
• Get your product in
production at your
price goal
• Do it yourself or find partners
• Everything from materials to
distribution
• If you can’t make it, you can’t sell
it.

48. MinimumViableProduct Development
• Key part of Lean
• Definition of a MVP:
“…that product which has just
those features and no more that
allows you to ship a product that
early adopters see and, at least
some of whom resonate with,
pay you money for, and start to
give you feedback on”

49. Why A MVP?
Time and Money
Developing a full
product takes time
and effort you
probably don’t have
Get interest, get
money, buy
yourself time with
an MVP
Get feedback from
your customers
early
A way to bootstrap
your company

50. OtherTypesofMVP’s
Not a
Product
Video - Sell your design and features, Get
interest and funding
Futures Advertise and sell the product before you
actually create it – risky, you need to deliver
Fundraiser - Kickstarter, etc… May contain
Video and is sort of like Futures.
Service -
Do what
your
product
will do as
a service

51. TypesofMVP’s
• SoWware
– Giveit awayasbeta,alpha,oropensource
• Givesyouexperienceandbrandbuildingplusgreat feedback
– Singlefeature
• Findthatonethingthatpeoplewantanddeliverthat
• Google,Dropbox,etc…
– AtrueMVP
• Identifythekeyfeature you
musthaveand developfor
those

52. Types ofMVP’s
Hardware
• Only option is to limit your
first release to the absolute
minimum of features
• Focus on building early
success

53. SuccesswithaMinimum ViableProductDevelopment
Do the step before right
• Get the true requirements of
your customers
• Rank them accurately
• Pick the absolute minimum of
features
Don’t go off on tangents
• Stick to the plan
Apply lean product
development principles

54. Design For
Manufacturability

55. Overarching Goal

57. The Product Look & Feel

58. Aesthetics / Ergonomics et.
Al.
— Designers have moved from just designing to
identifying products and building solutions
— Applying the principles of design for better user
experience
— Design has traditionally been associated with
aesthetics but as evolved to building evolving
product portfolios
— Patterns always follow from knowledge and
expertise

61. Lines
Circles
Curved
Lines
Jagged
Edges

62. Community
Friendship
Love
Unity

63. Squares and Triangle
Stability
Balance
Efficiency
Power
Law
Religion
Masculine

64. Vertical Lines
Aggression
Strength

65. Horizontal Lines
Tranquility
Calm
Community

66. Lettering & Colors &
Repetition

67. Negative Space
— Space around the
object
— Brings balance to
the artifact
Nike Air Max

68. Hierarchy & Proportion
— Size and Scake
— Size elements dramatically
large or small to focus on
key aspects of your design
of product

69. Symmetry & Texture

70. Eye Movement

71. Materials & Manufacturing
Methods

72. Definition of DFM
Design For Assembly:
Product Simplification
Design for Manufacture:
Early Cost Estimating

73. The goal of DFM analysis is to
determine what a product should
really cost to make.
Definition of DFM

74. The Three Main Uses Of DFM
As the basis for engineering
studies to provide guidance to
the design team in simplifying
the product, reducing
manufacturing and assembly
costs and to quantify
improvements

75. The Three Main Uses Of DFM
As a benchmarking tool to
study competitors products
and to quantify
manufacturing and assembly
difficulties

76. The Three Main Uses Of DFM
As a tool to help validate
design concepts, provide
cost predictions, and to
negotiate suppliers bids and
contracts

77. How Does DFM Help ?
Engineering:
• Speed to market: Fewer engineering changes
• Better use of time: Engineering spends more
time making products manufacturable, less
time making changes to products during
manufacturing phase
• “Lessons library”: Changes are documented;
can be analysed and improved
• Improved creativity: Can focus on what you do
best: exploration and innovation—using a very
sophisticated “what if” tool

78. DFM Benefits
Manufacturing:
• Manufacturing contributes more to design:
DFM promotes earlier involvement of
manufacturing in design, takes advantage of
manufacturing knowledge
• Improved efficiency: Unnecessary steps,
tools, and parts are designed out of the
production process
• Speed to market: Products are produced
more quickly due to streamlined
manufacturing processes

79. DFM Benefits
The Team :
• Improved cross-team cooperation: Provides metrics
for discussion, tools for concurrent engineering
• World-class product development and
manufacturing: Product design and production is
more structured, measurable, efficient
• Reduced cost: Products cost less to manufacture
(fewer tools, fewer parts, fewer steps, best
materials)
• More competitive: Marketing staff and salespeople
have a better product to take to market and a more
compelling story

80. Overseas outsourcing and DFM (Tricky)
DFM can find
savings in
materials and
manufacturing
that can more
than make up
for labor cost
differences
Lowered risks -
Keeping
manufacturing
“local” avoids
the costs and
risks of
outsourcing:
Costly engineering changes
Communication and cultural roadblocks
Quality problems
High shipping costs
Patent infringement

81. Overseas outsourcing and DFM
Can also be used to improve outsourcing
Products are easier to manufacture, reducing long-distance
engineering changes
Overseas suppliers can be held to “best practice” costs,
materials, and assembly methods
Material innovation can reduce weight, shipping costs
Quality can be designed in from the start
Streamlined design-to-manufacturing can reduce communication
problems

82. About 75%-80% of quality
issues during mass production
are due to design
Design for Manufacturing Aims
to:
1. Reduce material, overhead
and labor cost
2. Shorten the product
development cycle
3. Focus on standards to reduce
cost
Design
75%
Manufacturin
g
25%
Quality Issues

83. DFM Steps
Affordable/attractive,
serve the purpose its
designed/used for
4. Conclusion
1. Conceptualization
2. Analysis
3. Redesign

84. DFMA Steps
Components, Processes,
Combined Components, Main
Assembly
and or subassembly
-Is the component moving?
-Is the component required to be
removed for maintenance?
-Can it be made from different
material?
4. Conclusion
1. Conceptualization
2. Analysis
3. Redesign

85. DFMA Steps
4. Conclusion
1. Conceptualization
2. Analysis
3. Redesign From these questions, suspect
components and processes
should be identified and
redesigned.

86. DFMA Steps
4. Conclusion
1. Conceptualization
2. Analysis
3. Redesign
Reports, evaluations,
tests, etc.

87. Key Principles In The DFM Proces
1. Minimize part count
2. Standardize parts and materials complexity
3. Create modular assemblies
4. Design for efficient joining
5. Minimize re-orientation of parts during assembly and/
or machining
6. Simplify and reduce the number of
manufacturing operations
7. Specify ‘acceptable’ surface finishes for
functionality

88. Key Principles in the DFM
Process:
1. Minimize part count‘..If more than 1/3 of the components in a
product are fasteners, the assembly logic
should be questioned.’

89. 2. Standardize parts and materials
complexity

90. 3. Create modular assemblies

91. 3. Create modular assemblies (contd.)
• (standardization of sub-systems….)
• All components can be removed as single pieces, which
assists with servicing and troubleshooting.
• Can make the modules themselves expensive (and certainly
more expensive than the one component that actually broke)
but this is the trend in industry. Makes for faster repairs, less
trouble-shooting time and quicker service events in general.

93. 4. Design for efficient joining

94. 5. Minimize re-orientation of parts during
assembly and/or machining

95. 6. Simplify and reduce the number of
manufacturing operations
• Lean Manufacturing
• Henry Ford was one of the first people to develop the ideas
behind Lean Manufacturing. He used the idea of "continuous flow"
on the assembly line for his Model T automobile, where he kept
production standards extremely tight, so each stage of the
process fitted together with each other stage, perfectly. This
resulted in little waste.
Pessimist: Half
Empty
Optimist: Half
Full
Lean Thinker: Can I
reduce the glass half the
size?

96. 7. Specify ‘acceptable’ surface finishes for
functionality

97. The DFM difference
“Up to 80% of the cost of a new part is locked in during the early
design phases where material and manufacturing processes are
defined. In the past engineers relied on historical factors…or
turned the part over to purchasing after the design was finalized.
“This approach doesn’t work with new innovations, and changes
made to cut costs after the design is complete are very expensive.
“DFM…not only allows ‘pure’ costing of materials and
manufacturing technique at the earliest of design phases, it
allows engineers to investigate the cost impact of alternate
manufacturing processes they may not even be familiar with.”
--Industry Week

98. Labor Costs - 42%
Part Count - 54%
Separate Fasteners - 57%
Weight - 22%
Assembly Time - 60%
Assembly Cost - 45%
Assembly Tools - 73%
Assembly Operations - 53%
Product Development Cycle - 45%
Total Cost - 50%
Average reductions in DFM
cases

99. Design improvement example
START:
§ 3 parts
§ Requires a
screwdriver
§ Needs
careful
alignment
§ Time-
consuming
§ 3 parts
§ Requires
a rivet
gun
§ Alignment
not as
delicate
§ Assembly
time less
§ 2 parts
§ Integrated
fastener &
cradle (A
becomes
B)
§ Requires
machine
to secure
the head
of the
fastener
§ 2 parts
§ Integrated
fastener &
cradle
§ Requires
machine to
press part
into place
FINISH:
§ 2 parts
§ Integrated
fastener &
cradle
§ Can be
hand-
pressed
into place
- even by
end
consumer
- and can
be
removed
A
B

100. Gathering DFM Information
— Sketches, drawings, product specifications, and
design alternatives.
— A detailed understanding of production and
assembly processes
— Estimates of manufacturing costs, production
volumes, and ramp-up timing.

101. DFM Method
— Estimate the
manufacturing costs.
— Reduce the costs of
components.
— Reduce the costs of
assembly.
— Reduce the costs of
supporting production.
— Consider the impact of
DFM decisions on other
factors.
Estimate the Manufacutring
Costs
Consider the Impact of DFM
Decisions on Other Factors
Recompute the
Manufacturing Costs
Reduce the Costs of
Supporting Production
Reduce the Costs of
Assembly
Reduce the Costs of
Components
Good
enough
?
N
Y
Acceptable Design
Proposed Design

102. Estimate the Manufacturing
Costs
Finished GoodsManufacturing System
Equipment Information Tooling
WasteServicesSuppliesEnergy
Raw Materials
Labor
Purchased
Components

103. Elements of the Manufacturing Cost of a
Product
Manufacturing Cost
OverheadAssemblyComponents
Standard Custom Labor
Equipment
and Tooling
Support
Indirect
Allocation
Raw
Material
Processing Tooling

104. Manufacturing Cost of a Product
Component
Costs (parts
of the
product)
Parts purchased from supplier
Custom parts by you or by your supplier
Assembly
Costs (labor,
equipment,
& tooling)
Overhead
Costs (all
other costs)
Support Costs (material handling, quality assurance,
purchasing, shipping, receiving, facilities, etc.)
Indirect Allocations (not directly linked to a particular
product but must be paid for to be in business)

105. Fixed Costs vs. Variable Costs
Fixed Costs – incurred in a
predetermined amount,
regardless of number of
units produced (i.e. setting
up the factory work area or
cost of an injection mold)
Variable Costs – incurred
in direct proportion to the
number of units produced
(i.e. cost of raw materials)

106. Reduce the Cost of Components
Understand the Process Constraints and Cost Drivers
Redesign Components to Eliminate Processing Steps
Choose the Appropriate Economic Scale for the Part
Process
Standardize Components and Processes
Adhere to “Black Box” Component Procurement

107. Understand the Process Constraints and
Cost Drivers
Redesign costly parts with the same
performance while avoiding high
manufacturing costs.
Work closely with design engineers—raise
awareness of difficult operations and high
costs.

108. Redesign Components to Eliminate
Processing Steps
Reduce the
number of steps
of the production
process
Will usually result in reduced costs
Eliminate
unnecessary
steps.
Use substitution
steps, where
applicable.
Analysis Tool –
Process Flow
Chart and Value
Stream Mapping

109. Choose the Appropriate Economic Scale
for the Part Process
Economies of Scale – As production volume
increases, manufacturing costs usually
decrease.
Fixed costs divided among more units.
Variable costs are lower since the firm can
use more efficient processes and
equipment.

110. Standardize Components and
Processes
Economies of Scale – The unit cost of a
component decreases as the production
volume increases.
Standard Components—common to more
than one product
Analysis tools – group technology and mass
customization

111. Reduce the Costs of
Assembly
Design for
Assembly (DFA)
Integrated Parts
(Advantages
and
Disadvantages)
Maximize Ease
of Assembly
Consider
Customer
Assembly

112. Determining the Theoretical Minimum
Number of Parts
Does the part need to
move relative to the
rest of the assembly?
Must the part be made
of a different material
from the rest of the
assembly for
fundamental physical
reasons?
Does the part have to
be separated from the
assembly for assembly
access, replacement,
or repair?

113. Integrated Parts (Careful)
Do not have to be
assembled
Often less expensive to
fabricate rather than the
sum of each individual
part
Allows critical
geometric features to be
controlled by the part
fabrication process
versus a similar
assembly process

114. Minimize Ease of Assembly
Part is inserted from the top of the assembly
Part is self-aligning
Part does not need to be oriented
Part requires only one hand for assembly
Part requires no tools
Part is assembled in a single, linear motion
Part is secured immediately upon insertion

115. Consider Customer Assembly
Customers will tolerate some assembly
Design product so that customers can easily
and assemble correctly
Customers will likely ignore directions

116. Reduce the Costs of Supporting
Production
Minimize
Systemic
Complexity
(inputs,
outputs, and
transforming
processes)
Use smart design decisions
Error
Proofing
Anticipate possible failure modes
Take appropriate corrective actions in the early
stages
Use color coding to easily identify similar looking, but
different parts

117. Consider the Impact of DFM Decisions
on Other Factors
Development
Time
Development Cost
Product Quality
External Factors
• Component
reuse
• Life cycle costs

118. Design for Production
Design Organization
Timing of Production
Material Identification
Specific Design Details (outputs)

119. Design for Production General Principles
1. Use Common Sense
2. Plan and Define
3. Consider Available Facilities
4. Consider Available Tools
5. Consider Available Worker Skills
6. Employ Simplicity
7. Standardize

120. Design for Production Guidelines
1. Minimize Total Number of
Parts
2. Develop a Modular Design
3. Minimize Part Variations
4. Design Parts to be
Multifunctional
5. Design Parts for Multiuse
6. Design Parts for Ease of
Fabrication
7. Avoid Separate Fasteners
8. Minimize Assembly
Direction (Top Down
Direction Preferred)
9. Maximize
Compliance in
Assembly
10. Minimize Handling
in Assembly
11. Minimize complexity
of Design
12. Maximize common
Jigs and Fixtures
13. Optimize Work
Position

121. Types Of Prototypes
Physical
• Tangible artifacts
created to approximate
the product
• Used for testing and
experimentation
Analytical
• Represents the product
in a nontangible, usually
mathematical manner
• Product is analyzed, not
built
Comprehensive
• Implement all (or most) of
the attributes of the product
• Full-scale
• Fully operational version of
the product
Focused
• Implement a few of the
attributes of the product
• Use two or more focused
prototypes together to
investigate the overall
performance of a product

122. Prototype Uses
Learning
Will it work?
How well does it meet the customer needs?
Communication
Within the company
With customers, vendors, and suppliers
Integration
Subsystems and components work together
Milestones
Product achieved a desired level of
functionality

123. Principles of Prototyping
Analytical Prototypes are generally more flexible than
Physical Prototypes
Physical Prototypes are required to detect
unanticipated phenomena
A Prototype may reduce the risk of costly iterations
A Prototype may expedite other development steps
A Prototype may restructure task dependencies

124. Prototyping Technologies
3D
Computer
Modeling
Easily visualize the 3D form of the
design
Automatically compute physical
properties
Other more focused descriptions
can be created based on one design
Detect geometric interference
among parts

125. Prototype Technologies Cont.
Free-Form
Fabrication
(or Rapid
Prototyping)
3D printers that create physical
objects directly from 3D computer
models / Additive Manufacturing
Less expensive than tooling
Reduce product development time,
improve resulting product

126. Planning for Prototypes
Define the purpose of the prototype
Establish the level of approximation of the
prototype
Outline an experimental plan
Create a schedule for procurement,
construction, and test

127. Define the Purpose
List specific learning and communication
goals
List any integration needs
Determine if the prototype is intended to be
one of the major milestones of the overall
product development project

128. Establish the Level of
Approximation
Determine physical or analytical prototype
Choose the simplest prototype that will
serve the purpose established in step 1.
Consider existing prototypes or a another
prototype being built that can be borrowed

129. Outline an Experimental Plan
Use prototype for experimentation
Extract the maximum value from the
prototyping activity.
Identify the variables of the experiment, test
protocol, plan for analyzing the resulting
data

130. Create a Schedule for Procurement,
Construction, and Test
Determine when parts are ready to be
assembled
Determine the date when prototype will be
first tested
Determine expectations for completed testing
and final results

131. Milestone Prototypes
Alpha Prototypes – assess whether the
product works as intended
Beta Prototypes – assess reliability and to
identify any bugs in the product
Preproduction Prototypes – first products
produced by the entire production process

132. Examples

133. Medical Devices
§ Very structured
product development
process: structured
plans describing the
process,
organizational
structure,
responsibilities and
deliverables at every
phase of
development
§ Applied DFM early in
the development
process and concept
Product Concept
Feasibility Demonstration
Models
Engineering Prototype
Verification Prototype
Manufacturing Prototype
Production Instrument
DFM
DFM
DFM

134. Medical Devices
Final design includes
a single aluminum
extrusion; eliminated
separate rails and
associated fasteners
Improved structural
strength
Lowered weight

135. Medical Devices
46 parts versus 86
5 minutes of
assembly versus 12
minutes
Top rail started out
as 19 pieces, ended
up as one
More easily serviced
Other components,
such as printed
circuit boards, can
now be added easily
to the assembly

136. Consumer Product
Used DFM to investigate
the overall structural
efficiency and
manufacturability of the
product.
DFM utilized in three
distinct stages
• Bill of materials phase (round 1)
• Mid-product development (round
2)
• Fine-tuning the design (round 3)
Benchmarked design—
number of parts,
manufacturing costs,
price points—against
competitors (Krupps and
Braun)
“Brewing Efficient, Manufacturable Designs,” by Richard Mandel, Manufacturing Center.com

137. Consumer Product
§ Positioned the motor
assembly higher on the
machine, closer to the
power destination
§ Designers could then use
a smaller motor—uses
less power and makes the
unit more sleek

138. Consumer Product
Product: Water
treatment device for
home use
Goals:
• Portability
• Able to filter out large
particles without clogging
the unit, to meet the needs
of high-growth areas for
these products, such as
South Asia
• Reduce part count and
assembly time

139. Consumer Product
— Final design highly portable
§ Can be installed easily on
countertop or below sink
§ Uses carbon block
filtration and UV-light
disinfection
§ Kills bacteria and virus
organisms to a greater
than 99.9% purity level

140. PC Manufacturer For Retail
Product: Desktop computer,
configurable by the customer
Promises 5-day delivery of a
custom computer
Uses factories in the United
States, Ireland, Malaysia, and
China
Wanted to connect two
processes: How the
customers configured their
computers and how the
factories assembled the
computers—“match customer
clicks to factory picks”

141. PC Manufacturer
Set out to more
completely integrate
components, such as
chassis and the
motherboard, before they
arrive at the factory.
Worked with functional
areas and offshore
manufacturing partners to
evaluate value chain
Freight/packaging
Productivity
Quality
Inventory issues
Reworking
Forecasting accuracy
Demand volatility
Capital expenditures

142. PC Manufacturer
• “Quality events.” Anything that adversely affects the
customer’s experience—can have a domino effect that
must be carefully managed
• Forecast accuracy. Manufacturer is a build-to-order
manufacturer, but suppliers still need accurate demand
forecasts
• Demand volatility. Unplanned large orders can
adversely affect commitment to ship a custom-
configured system within 5 business days, given
manufacturer’s 2 hours max inventory in-house, and
10 days of sales inventory at supplier hubs

143. PC Manufacturer
On the left is
the original
chassis design,
without the
motherboard,
as it used to
arrive. Now the
chassis and
motherboard
come to
manufacturer
as a single, fully
assembled unit.

144. PC Manufacturer
Assembly time has been reduced 30%
Number of components handled in the assembly process reduced by an average of
10%
Avoided the need for immediate facility expansion
Able to keep up with increased customer demand without building new factories
Simplified internal processes. Motherboard and chassis design and manufacturing
now treated as one effort—buyers, planners, designers in one group

145. Harley-Davidson
— Product: Motorcycles
— General goals:
§ Identify component costs early in the design
process to make design, material, or process
substitutions that have positive impact on cost
§ Establish benchmarks with suppliers on all
components, encouraging them to improve
their quality and efficiency
§ Improve cost predictability to more
consistently meet revenue and cost targets

146. Another Harley-Davidson
Example
“One of Harley’s initiatives is product cost
management, which ties the cost of new products
to the company’s financial objectives. The
mechanics establish early, accurate information on
product cost.
“Cost is attacked
before design, tooling,
or a process even
exists, maximizing the
opportunity to hit
project cost goals.”

147. Harley-Davidson
— Harley engineers team up with supplier
engineers
— CAD models or geometric
representations of each part are analyzed
using DFM
— Cost information that sparks discussions
about the elements driving cost (labor
rate, material, process, design, lot size,
etc.)

148. Harley-Davidson
— Specific application:
motorcycle frame
— New frame had been designed,
was expected to reduce costs
by $70
— Prior to manufacturing the new
frame, Harley-Davidson used
DFM to analyze the current
frame and new frame designs
¡ Analyzed: processing steps,
material cost, operating
efficiency, plant cost structure
and found that it would cost
$7 more
¡ Needed to analyze and decide

149. Laboratory Instrument
Product:
Hybrid
mass
spectro
meter
Goals: To grow
market share
by technology
with
conventional
quadruple
designs (which
give chemists
a widened
range of
compounds
that they could
identify)
Had to get a high-quality, cost-
competitive, shippable product
to market in 15 months
No onsite assembly and/or
technician required to install

150. Laboratory Instrument
Analyze the existing
design, consolidate
parts, and eliminate
assembly difficulties
Wanted the design to be
modular, aiming for
more manageable
development and better
assembly and
serviceability.
Divided the design
logically into

151. Laboratory Instrument
Cut materials cost by $35,000 per unit
Reduced opportunities for design and manufacturing
corrections, by more than half the number per part
Product to market in 14 months
Captured one-fifth of the global market in the first
year of sales
Increased revenue by $20 million

152. Determine the
least expensive
method for
producing a high-
quality product, at
the design stage
Hold vendors
accountable, using
industry-standard
data and process
alternative
analysis
Give engineering
and manufacturing
teams the tools
they need to
optimize their
efforts
Simplify assembly,
cutting costs while
boosting output
and streamlining
logistics
Successful companies depend
on DFM to...

153. Lets Talk About Your Product

158. Packaging and Labeling

159. While branding gives a
specific brand personality,
packaging puts a face on a
product. Effective packaging
creates a good impression,
helps to sell the product,
and communicates benefits
to customers.
A package is the
physical container or
wrapping for a product.
10 percent of a
product's retail price is
spent on package
development and
design and the package
itself.
A package is a selling tool. Its
functions include:
• promoting and selling the product
• defining product identity
• providing information
• meeting customer needs
• ensuring safe use
• protecting the product

160. A label is an information tag, wrapper, seal,
or imprinted message that is attached to a
product or its package. A label’s purpose is
to:
• inform about a product’s contents and direction for
use
• protect companies from legal liability
• contain a brand name, logo, ingredients, special
promotional messages, and other useful information
• Many package labels must meet state, and federal
standards to prevent manufacturers from misleading
consumers.

161. CE
Label
FCC
Label
ISI
Label
FDA
Certified

162. Pricing Models

163. What Is Price ? Is Price An Alternative ?

164. Why Are Prices Different ?
Choices
• Configurations
• Size of suppliers
• Profit Expectations
• Buying in bulk ?
• Paying in advance
Vs.Paying post
purchase

165. Price For A Glass Of Water

166. 3 Types
Cost Based
Market Pricing
Value Pricing

167. Cost Based Pricing
Cost
Based
Model
Study your cost and volumes
Set Profit Expectations
Direct Cost + Indirect Costs +
Overheads + Mark-up = Price

168. Market Based Pricing
Market
Based
Model
Study your market space
and competition
Position yourself in the
market
Set the price according to
market and position

169. Value Based Pricing
Value
Based
Model
Identify the benefits for
your customers
Quantify the benefits in
money
Set the price based on
the value for the customer

170. Cost Based Pricing
— All costs(Direct + Indirect) + Markup = Cost Based
Pricing
— Markup need not be the same as margin or profit
— Direct Costs – Costs associated directly with the
production of a product or service (production staff,
factory equipment etc.)
— Indirect Costs – Indirectly associated costs (Admin staff,
Support Staff , factory space etc.)
— They are not the same as fixed and variable costs

171. Example

172. Direct Indirect Direct Indirect Direct Indirect
Coffee
beans
Tissue Operator Electricity Loans and
Interest
Water Stirrer Coffee
Machine
Office Rent
Cups Support
staff like
accountan
t
Sugar Licensing
Milk
Material Labor Other Expenses
Add up variable + fixed costs and add markup and get the cost

173. Summary
— Get a good sense of your fixed and variable
costs as that way you can manage your
sales forecasts and product pricing better
— Make sure you get a good idea of what your
per unit cost is going to be

174. Product Liability

175. Product Liability ?

176. Types
Negligence Warranty
Liability Misrepresentation

177. Some Experiential
Perspective

178. India Challenges
Regulations Suppliers
Stakeholders Costs

179. UsetheLeanProduct DevelopmentProcess
Clearly define
requirements and
design to them
Requirement should
be focused on
customer value
Frontload the
process with
exploration and
iterations
Create a level PD
process
Balance expertise
and cross-­‐function
integration
Design quality in to
the product
Involve suppliers in
the process
Develop expertise in
your technical staff
Build in a culture of
excellence and
relentless pursuit of
continuous
improvement
Use standardization
when possible,
without blocking
flexibility

180. ForMassProduction
• Asastartup,youneedtobecareful
• Theseprinciplesweredevelopedfora
large, established,massproduction
company
• Theycanbeappliedtoastartup,
lower volumes,andsimplerparts
• Justask“Doesthisaddvalue?”

181. BasicPrinciples
Eliminate Waste
• Many types of waste, all bad
• Review, identify, reduce or
eliminate
Continuous
Improvement
• Should be throughout your
organization
• Built in to your manufacturing
planning and execution
People
• Honor and respect your
workers
• Train, communicate, praise
Just in Time
• Too detailed and complex to
talk about here
• Understand, plan,
communicate
Quality Built In

182. LeanManufacturing AndTheStartup
What part of the
process will you do,
what will you outsource
• It is rare for a startup today
to do their own
manufacturing
Find a vendor that
applies the principles
and work with them
Integrate with your
vendor
• Be part of the process
• Pay to have someone be your
liaison and be there with
them and you
Bottom line: Throwing
things over the wall is
not lean manufacturing
Bottom line 2: Find the
right vendor and work
with them, not against
them.

183. SomeGeneralAdvice
First time:
• – Product Development
and Manufacturing will
take longer and cost
more than you thought
Sticking to lean
principles will
minimize time and
cost and maximize
value
Listen to the
experts
Develop key
requirements and
laser focus on
delivering those

184. WhyThingsGoBad
Desire for features and
lack of desire or
ability to pay for them
• Biggest cause of unhappy/
fired customers
“It didn’t work”
• Find a problem and need to
redesign
• Or no way to meet
requirement
Variation from
requirements
Loss avoidance

185. In Summary
Prioritize
Product
Development
and
Manufacturing
Market research, sales, marketing, etc.. are
a lot more glamorous
Hire or outsource – then listen to them
Its about process
Successful
products all
share one
thing
Good design and successful manufacturing

186. Reach out to ELADO Consulting
for any help around DFM
email : info@elado.co.in
web site : www.elado.co.in