Okay, it goes without saying that in any engineering domain, saving money sounds like a major win — until it backfires!
Yes, with rising pressure on margins, nowadays companies are turning to value engineering services to find smart cost effective methods.
But here’s the harsh truth! Cutting down on costs without the right checks often leads to even severe losses. As a result you can run into consecutive failed tests, field returns, and unhappy customers.
Hence, before undertaking any cost-driven changes to a design, especially when working with outsourced value engineering services.
I initiate by asking myself these 3 crucial questions.
Does This Cut Compromise The Product’s Reliability?
Now, one of the most common pitfalls in any form of cost-cutting is underestimating the long-term reliability factors. Likewise, a cheaper capacitor might pass bench tests, but what happens after 12 months in a humid environment? Or during a voltage spike?
Moreover, I’ve seen projects where saving $0.08 per unit with a cheaper option, resulted in losing $50,000 on warranty replacements. Obviously, the cheaper replacements degraded faster under real-world conditions.
Therefore, always review based on reliability specifications and not just on datasheets KPIs. Also, If you are using any outsourced value engineering services, ensure they simulate it for worst-case scenarios. Plus, don’t forget to loop in quality assurance practices earlier in the development cycle.
Will This Change Impact Related Components' Performance?
Accordingly, in certain complex assemblies, one change will affect others. For instance, a slightly slower processor, then a higher-ESR capacitor, or a thinner gasket might look harmless in the first place. But, not until it affects everything from boot time to thermal loadouts.
Talking of which, I once watched a perfectly working prototype fall apart in pre-certification testing. Yes, all because a cheap voltage regulator that introduced ripple interfering with the signal integrity. Consequently, the redesign process delayed the launch by almost six weeks.
Therefore, always create a dependency map before approving any type of substitution before installation. Likewise, many outsourced value engineering services now offer digital twins or simulation tools for advanced ussages.
Are We Truly Saving Money Or Shifting The Cost Elsewhere?
Finally, cost-cutting eventually moves the expenses from design to manufacturing or support practices as well. Truly, cheaper materials may be harder to fabricate in development processes. Whereas, lower-grade components may additionally require more testing or tighter handling processes.
Likewise, I have seen saving 10% on components gradually lead to a 20% increase in assembly costs across industries. Why, you may ask? Well, new parts usually require custom modifications, which in result slows down the process extensively. On the other hand, utilizing cheaper components often results in high failure rates as well.
So, before approving any modifications of that sort, always prioritize calculating the total cost of ownership. Accordingly, work closely with your outsourced value engineering services partner to factor in
- Logistics Processes
- Labor Management
- Quality Control Practices
- Post-sales support
Bottom Line
To sum up, cost-cutting should never result in cutting corners! What i meant is before making any modifications, ask yourself:
- Does this reduce long-term reliability?
- Will it affect performance elsewhere?
- Are we shifting the cost to another phase?
Besides, we at Gighz offer value engineering services — not just to reduce your BOM (Bill of Materials), but to drive smarter and more sustainable design decisions.
Because in engineering, the cheapest option isn’t always the most valuable one.
Therefore, reach out at info@gighz.net for a free consultation.
For more updates and enclosure design solutions follow us at- https://www.linkedin.com/in/chandra-thimma/
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