Sandeep A.
Hingne
Project Manager,
Integrated
Engineering
Solutions
Satyam Ltd.
Pune, India
Edited by Kenneth Korane
Perhaps as much as any discipline, engineering has
undergone radical changes in the last century — from
the internal-combustion engine and first automobile to
the space shuttle and Airbus 380.
Other advancements, although less publicized, are
just as vital. Design for Costing (DFC) is an example of
an extremely effective but underappreciated engineering
development. While DFC is being applied successfully in some markets, it has
yet to make a significant impact in North America and Europe. That should
change as executives across the globe face increasing pressure to come up with
innovative solutions to business problems.
DFC is a lean, streamlined approach to engineering that begins with a fixed
price. Specifically, analysts determine what a company ought to charge for a particular
product. Then engineers create the product within those parameters.
DFC programs start with a proof of concept validated with a pilot program.
Next, they go straight to production. Costs are established and the product is
engineered according to the predetermined figure. So value analysis and value
engineering, which typically follow product development, are unnecessary.
Importantly, the DFC approach has zero tolerance for overruns. Instead,
engineers are challenged to create innovative designs — via lighter or cheaper
materials, more-efficient processes, or more-robust technologies, for instance
— without compromising quality. DFC also helps engineers negotiate with
vendors more effectively, leverage existing infrastructure, and decide whether
to make or buy components.
This insistence on innovation spurs creativity and transformational thinking;
eliminating design steps speeds time to market. All the while, the inherent
fiscal discipline keeps costs down. Significant profits often result from exceptional
sales, because DFC programs can make items available to new and very
large numbers of consumers.
For example, Spice Mobile, an Indian telecommunications company,
recently introduced the “Folks Phone” at the Mobile World Congress in Barcelona.
The no-frills model can only send and receive calls. It does not suffer
from feature creep, whereas most cell phones come equipped with a camera,
calculator, games, and Internet capability whether consumers want them or
not. Its simple design lets Spice offer the product for about $25, a figure affordable
by great numbers of Indians.
DFC continuously monitors and validates such projects to ensure they stay
on course and within budget. This control makes them especially suited to industries
that need precise engineering and exceptional performance, but varying
degrees of features. These include aerospace, automotive, and consumer
appliances, to name a few.
In contrast, conventionally engineered products that exceed budgets are
usually stripped to the basics, defeating the purpose of advanced design. The
use by DFC of continuous checks reduces the need for reactive feature removal,
letting more innovations see the light of day.
DFC should be the baseline of all design engineering. It keeps projects focused
and lets engineers create products that connect deeply with new customers. As a
result, engineers are far more likely to develop truly transformational products,
rather than simply adding bells and whistles to existing ideas.
Satyam Ltd. (satyam.com) provides engineering design and
development, quality consulting, and other high-tech and outsourcing
services worldwide.