News
18.06.26
Design to Cost vs. Design for Manufacturing: Where you can save money during development
How you can make significant savings right from the development stage – without compromising on quality or innovation.
A crucial mistake is often made in product development: costs are only given proper consideration once the design has already been finalised. This leads to last-minute corrections, unexpected production problems and, in the worst-case scenario, a loss of marketability.
However, by setting the right course at an early stage, it is possible to significantly increase a product’s efficiency – both economically and in terms of manufacturing. Two established methods support this: Design to Cost (DtC) and Design for Manufacturing (CfM). Both concepts aim to reduce costs, but pursue different strategies.
Design to Cost: Cost as a Development Parameter
Design to Cost means developing products with cost in mind right from the start, without losing sight of functional and quality requirements. Unlike conventional approaches, DtC sets the target price at the very beginning of the development process. The key question is not: ‘How much does the product cost?’, but rather: ‘How much can it cost to be successful on the market?’
Typical measures in Design to Cost:
- Material substitution: using cheaper but functionally equivalent materials
- Functional integration: Replacing several components with a single multifunctional part
- Design simplification: Reducing the design to the essentials to minimise manufacturing costs
- Assessing outsourcing: Evaluating ‘make-or-buy’ decisions at an early stage
A well-thought-out DtC concept begins with the definition of requirements. In close collaboration between product management, controlling, procurement and development, a target cost framework is drawn up, which serves as the basis for all subsequent decisions.
Design for Manufacturing: Design for Manufacturing
Design for Manufacturing focuses on designing products in such a way that they can be manufactured easily, reliably and cost-effectively. The aim is to reduce complexity in production and to optimise manufacturability right from the design phase.
Typical measures in Design for Manufacturing:
- Standardisation: use of standard components and tried-and-tested manufacturing processes
- Ease of assembly: Designing for simple and rapid assembly
- Tolerance management: Setting realistic and production-friendly tolerances
- Material selection: Taking into account the workability and availability of materials
By involving manufacturing experts at an early stage in the development process, potential production problems can be identified and avoided, leading to more efficient and cost-effective manufacturing.
Opposites or a dream team? Why both approaches achieve more when combined
At first glance, DtC and DfM appear to be two competing approaches: on the one hand, market and price orientation; on the other, technological feasibility. Yet the real key lies in combining both perspectives.
A product that is cheap to produce but not priced in line with the market is just as problematic as one that meets the target price but cannot be manufactured efficiently.
A sensible integration of both methods:
- Parallel processing rather than sequential processing: both methods are considered together from the outset
- Cross-functional teams: Procurement, Controlling, Design, Production and Product Management work together iteratively
- Early prototype validation: Simulation and testing minimise risks in later phases
- Learning organisation: Experience gained from manufacturing feeds back into future design processes
Understanding cost drivers – and eliminating them in a targeted manner
The greatest potential for savings lies not at the end, but at the start of a development process. As much as 70–80% of product costs are determined during the concept phase – that is, where design decisions are made. The following questions help to identify the right levers early on:
Which functions are truly relevant to the user?
Are there any existing solutions or platforms that can be built upon?
What manufacturing technologies are available – and what do they cost per unit?
Where do hidden costs arise (e.g. during assembly, in delivery times, with returns)?
Practical example
Exploiting synergies: combining DtC and DfM
The combination of Design to Cost and Design for Manufacturing enables companies to optimise both product costs and manufacturability. Whilst DtC focuses on economic targets, DfM ensures that these targets can actually be achieved in practice.
An integrated approach promotes collaboration between different departments and leads to holistic product development that is both market-oriented and efficient from a manufacturing perspective.
Optimise your product development with the d.u.h. Group
As an experienced partner in mechanical and plant engineering, we can help you develop your products in a cost-effective and production-friendly manner.
Topics
Training
Mehr entdecken