Affordability/Design-to-Cost

We offer guidance and expertise in the practical development of an overarching affordability/producibility plan that includes design-to-cost (DTC) methodologies and tools.

What is affordability?

Affordability is a continuous, all-inclusive process that is applied throughout the life-cycle phases of a product

It is used to optimize system performance for total life cycle cost (LCC) — including system design and development, low-rate initial production, full-rate production and support — while satisfying schedule and key performance parameters for the customer

The management of product cost begins with the conception of a new product idea

Understanding the customer’s key performance parameters for the product are critical in the design and development of a product that meets the customer requirements. In the past, the mantra was “create a product the meets or exceeds the customer requirements;” however “exceeding” often came at a higher price when “meeting” was the requirement

Typically, up to 70 or more percent of a product’s costs are committed based on decisions made during the system design and development phase

Once a product goes into production, it’s very costly to make changes to its design and the associated manufacturing process

Historically, product cost has taken a second seat to schedule and product weight in the aircraft/aerospace industry

It’s imperative that design-to-cost methodologies are introduced early in the process in order to maximize cost savings

Design-to-cost tools:

Design for manufacturing (DFM)

Concurrent engineering with customer

Producibility analysis

Trade studies comparing design features, material form and manufacturing process

Process modeling

Cost modeling

Historical data

Parametrics

Economic order quantity

Learning curve

Design-to-cost approach is used for:

Establishing a target cost that meets customer expectation

Establishing “should cost” targets to aid in procurement of products that meet the target cost