Standardization Consulting would consist of the following activities for
standardizing parts and materials for new designs:
- Identify and generate strategies for early steps to stop the
proliferation, eliminate approved but unused parts, and eliminate duplicate
- Develop procedures for selecting preferred (standard) parts based Pareto
plots of current usage, anticipating new generation parts, consolidating
tolerance/grades, optimizing availability/sourcing, and structuring and
issuing the lists. These would be based on the standardization
procedures presented in Chapter 5 of the book
"Design for Manufacturability & Concurrent Engineering."
- Develop special procedures for expensive parts which may appear to raise
one product’s part cost, but widespread adoption would result in a net
- Develop ways to encourage standardization including reducing material
overhead on standard parts, which also credits standard-parts-based products
with the cost savings deserved.
- Develop procedures for maintaining/updating the standard parts lists.
Although the primary focus of part standardization is for new products, a
related topic is reducing part proliferation for existing products, which
would represent significant cost reduction opportunities in supply chain
management. The strategies would involve:
- Develop criteria and techniques to substitute “better than” standard
parts on existing products; and
- Product Line Rationalization, which
can eliminate the most unusual parts from plants as the most unusual
products are eliminated or outsourced. This is especially applicable of
older-technology parts, like through-hole circuit board components, which
could be rationalized away if the older products were eliminated or
outsourced, thus allowing plants to focus on only surface-mount components.
A related topic would be the elimination or outsourcing of legacy products
and spare parts, which could greatly reduce the part variety in the plants.
Implementation would be done in Standardization Workshops.
For more information call or e-mail:
Dr. David M. Anderson, P.E., fASME, CMC
Cost Reduction Strategy (home page)
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