Medical Device Link.

CRISIS MANAGEMENT

While severe economic pressures can result in budget cutbacks and personnel layoffs, these changes fail to produce the organisational, process or product improvements that are necessary for gaining a competitive advantage. On the contrary, these measures may turn out to be inhibitors of change. In his study of the obstructions that inhibit the flow of knowledge in an organisation, Joseph Kasten of Dowling College (Oakdale, NY, USA) calls them “rocks in the stream.”

There are plenty of rocks in the stream, or obstacles, when it comes to meeting the challenge of reducing costs in the product development and engineering cycles. At the same time, tools are readily available for helping to remove those rocks in the stream. Here are seven such tools.

Reduce complexity. Unnecessary complexity can be a primary cost driver during product development. When business is good and everyone is busy, there is little time to rummage through previous projects and see whether any existing components might match the requirements of the new product. Slower periods can be an opportunity to tackle the complexity problem by creating a virtual parts bin, for example, where engineers can access a company’s engineering legacy and, in the process, reduce both development and engineering cycle times and costs.

Accelerate prototype development. Despite the advantages of 3-D digital prototyping, some engineers insist on creating physical prototypes. This process can create bottlenecks, as engineers wait around until the next prototype is finished. The cost, in both time and money, is too great to shoulder in today’s business environment. Companies that have not done so already should embrace digital prototyping.

Use more technology. Along with digital prototyping, technology offers other benefits. For example, it allows designers and engineers to work as teams, interacting quickly, whether they are in the same building or in remote locations half way around the world. New technology is always easier to deploy when an organisation is not running at full speed.

Make better use of suppliers. When suppliers are brought in at the start of a project, amazing things can happen. One automotive OEM saved US$12 million a year on the cost of key fobs by listening to its parts supplier, who pointed out that the company was using seven different key fobs across nine vehicle lines. By using one basic design with slight variations, significant savings were realised.

Listen to the people on the line. Assembly line personnel can be an engineer’s most useful resource. One manufacturer of precision systems made it a regular practice to have key individuals walk the production line. During one such walk, a manager spotted a hole reamer at a workstation. When he asked the worker why she had that piece of equipment, she replied that the workpieces typically had two holes that were just a bit too small for the insertion pins, so she would ream the holes until they fit. By modifying specifications and slightly enlarging the holes, 20 minutes were shaved off each assembly.

Think like a customer. Never forget that your company’s goal is to satisfy customers, not engineers or designers. A good role model in this regard is Apple. Many cell phones are not user-friendly and end up being a source of frustration for many people. Apple addressed this disconnect with its intuitive iPhone, which quickly became an unparalleled success.

Create and rationalise specifications. If this seems painfully obvious, then why are there so many exceptions . . . and so many costly mistakes? Having full product specs facilitates the bidding process and results in better pricing and product quality. They are a tool for eliminating redundancy and errors, saving time and obtaining cost advantages.

Dealing effectively with these “rocks in the stream” can help manufacturers stay competitive or gain a valuable competitive advantage in any economic environment, including very difficult times.