Flashpoint’s Managing Partner is presenting his paper “On the Use of Global Cost Modeling Early in New Product Development” this weekend at the IEEE International Engineering Management conference in Portugal.  This paper outlines the changes in the new product development industry, discusses the effect of those changes in the new product development process and finally illustrates an evolved new product development process by discussing a project undertaken by Flashpoint Development.  Today, I will focus on the first two topics as we will provide an in depth case study of the project in future posts.

Outsourcing production manufacturing has become the norm of many U.S. companies because it allows the domestic companies to focus on core competencies and often is more cost effective.  The growth of product development technologies like computer aided design (CAD), manufacturing networks (www.mfg.com) and rapid prototyping has allowed accurate manufacturing costs attainable earlier in the product development process. How this change has occurred and how it can help you is best displayed by comparing the traditional New Product Development Process with a process that incorporates cost modeling.

(Ulrich and Eppinger 2004 NPD Process)

In this traditional NPD process, costs can be estimated in the concept development and system level design but accurate product costs are received after the detailed design stage.

The  GNPD Process takes advantage of the ability to request part, assembly and production costs early in the design.  The cost modeling perspective allows developers to understand the cost implications of design trade-offs (complex snap in part or use of a fastener).  These decisions are examined before rapid prototyping, which leads to more accurate testing and fewer redesigns before production.

So the conclusion of this rather academic post is to contact and work with manufacturers even before prototyping.  I would even venture (not in the paper) to talk to manufacturers once you have a good sketch.  Send the sketch in pdf or jpg format to manufacturers and see what they say.  Their input at that stage, although the costs will be estimated, will help further your understanding of the requirements to actually produce your product.