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Actions to Reduce Product Costs

• Develop new production processes
• Capture learning curve and experience effects
• Increase capacity utilization
• Use focused factory arrangement
— reduces coordination costs
• Design for manufacturability
— reduces assembly time
— reduces training costs
— reduces warranty costs
— reduces required number of spare parts
• Design for logistical support
• Design for reliability
• Design for maintainability
• Adopt advanced manufacturing technologies
— reduces inventory levels
— reduces required production floor space
— reduces defects, rework and quality costs

SOURCE: Gerald I. Susman, “Product Life Cycle Management,” Journal of Cost  Management
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