Production methods have been traditionally tailoring allotted budgets to a given goal. All along the process, whatever instance requiring readjustments can entail a budget review. In other words, the means have been adapted to an end.
Design to cost is the opposite approach. The idea behind it is that, given a budget, operations should be shaped around it. Each player works with awareness of the available resources, and keeps an eye on the figures constantly.
Procurement services have been dealing with hardships finding and keeping cost-effective providers. This has been particularly true during the onset of the pandemics, and throughout the last 2 and a half years.
The French industry has been experiencing a 16% raise in production-related expenses in the span of only a year. Winter prices have done nothing but exacerbate this trend. The situation is not going to improve in the near future, at least not without radical changes in production methods.
An INSEE report records that production costs have reached a +20% increment over a year. The transportation industry has not been spared, and same goes for electronics and IT equipment.
France is not the only country impacted. Germany, for instance, has seen its production prices rise by 14,2% in a year and has reached a 25% peak in 2022. China has experienced a 10,7% increase in a year span as well.
Of course, industries try to keep prices affordable for their customers, but will not be able to shield them against inflation indefinitely.
Capgemini argues that DtC pushes the parties towards coming up with new solutions every step of the way. Which includes a closer collaboration between those in charge of the budgets, and those in charge of the manufacturing side of production.
Furthermore, gains ranging from 15 to more than 40% have been observed with this method.
It is a sustainable choice as well. By keeping the environment into account, waste is considerably reduced - including raw materials, human resources, and work hours. Such outcomes make companies compliant to state regulations and contribute to the improvement of their reputation.
By conceiving production around budget-related needs, performances are boosted. Carefully evaluating each aspect of product manufacturing, in a cost-effective perspective, leads to the optimization of the process.
Not only that - traditional methods are seldom able to guarantee durability, for it is usually not manufacturers’ intended goal. Whereas clients expect the products to last, their providers aim to sell as much equipment as possible.
This contrast in the needs of each party ends with DtC, which factors in the interests of each party involved. The financial gains in maintenance, energy consumption, and obsolescence can be redirected to manufacturers by making contracts more attractive for them.
DtC has become increasingly widespread throughout the world, and France is no exception.
For as concerns the industry, and transportation in particular, options are available to adjust processes to established budgets.
One instance is the French startup Dessia Technology, whose concept is to provide a Software Development Kit for developing Engineering Bots. Dessia’s platform gives access to groundbreaking technology, capable of automatically generating architecture designs for mechanical systems.
The user does not only buy one bot and its corresponding function, but the ability to create as many as they need. A bot is created taking into account all aspects of the product, promoting collaboration between engineering and manufacturing.The bots search all possible options and shortlist the best ones, while the engineers focus on making the final decision.
In a DtC perspective, the gain stems from the decrease in the time spent on the task as well as in the quantity of human resources deployed. In addition, Dessia’s platform increases the number of solutions made available not only for incumbent projects, but for future ones as well. The allotted budget will be able to cover all potential needs, making the investment extremely cost-effective. As a bonus, an open-source library is available on Dessia’s GitHub, for those who would like to test the tool beforehands.
To learn more about Dessia:
Feel free to reach out for a quotation, or any questions about Dessia’s technology: our team will be glad to have a chat with you!