What is
product optimization
For better understanding consider the following scenario :
You are the first one on the market with a product that brings quick
success to your company.
Unfortunately your peaceful trade is disrupted by a competitor that
offers similar product, but at much lower price. So what do you do?
You need to stay competitive and the way to do that is by Product Optimization. Vikron E/S offers this service to you
in two basic steps:
-
You
come to us with your existing electronic product and you provide
us with all possible information describing it both functionally
and technically.
-
We
use our experience and links to worldwide sources to provide you
with the information and rigid production plan that will significantly
reduce your manufacturing expenses and increase your profit
margin. Then you
make your own choice how to use and implement our recommendations.
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How
optimization benefits you
It
is needless to say that if optimization is successful the cost of
manufacturing will drop and your profit will increase. By how
much? Well, it all depends on the volume of your production. For
example consider a midrange production of 1000 units/month. If
optimization brings cost down by $1 this will translate to
$1000/month savings or $12000 savings per year. Higher volume manufacturing
will even have greater benefits.
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Design
for manufacturability and production cost reduction
The
process of optimization is best done during product development,
however this is not always possible due to time constraints. In
the following paragraph we discuss 5 ways, in which we can help
you optimize your product manufacturing.
Component
optimization
Products
often leave the development bench as prototypes, build with easy
to find, highly priced components. The reason for that is trivial
- shortage of time. Development teams simply do not have enough
time to search among hundreds of component sources and make
optimized choice between price and availability. This is where
Vikron E/S can help you fill the gap in your design. We take the
time , required to find that Bill Of Materials, which will make
your product be competitive and stay competitive.
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Material
optimization
As
the wave of the Technological Revolution progresses, faster than
ever before people come with better methods of production of different
materials. Some materials become obsolete and hard to find which
drives there price up. If your product contains such materials
its production cost may get too high and your profit margin too
low. In other cases some materials may exhibit specific
qualities, that are not required by your application, yet you
pay the extra cost anyway. Finding the best materials for your
product can make the difference between success and failure.
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Design
optimization
It
is not uncommon when design engineers incorporate multifunctional
circuits in a single function device . When the product gets
established on the market its functions become defined. Then the
multifunctional circuits may just carry extra production cost
with no benefit. This would be one case when design optimization
is required.
Another very common reason is when a system key component
becomes obsolete or not available.
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Manufacturing
process optimization
In
some cases the product design and component selection are
engineered to perfection, yet manufacturing cost remains high,
which impacts product overall cost. In search for the reasons
you would find out that your manufacturing process has great
appetite for manual labor. This would be derived from the lack
of manufacturing support system, that would automate or aid the
production in some way. You may also find out that your
manufacturing process generates too much scrap, due to the lack
of reliable test system. Manufacturing support systems are not
usually developed at the same time with the product, however
they have great effect on the manufacturing cost.
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Contract
manufacturer selection
There
are many manufacturing shops these days, both domestic and
foreign. Many
companies prefer off shore manufacturing, mainly due to lower labor
costs. It is not important who makes your product. What matters
is the final result and your answer to a simple question :
" Do you get the quality for the price you pay ? "
If you answer "yes", you probably do not need to
change your manufacturer.
However , if you answer "no" - Vikron E/S can
offer many alternatives.
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Cost
of product optimization service
Our
commitment is to provide you with a production-optimized version
of your existing product.
Based on the information from you, we start optimization
feasibility research. If optimization proves to be possible, we
commit to the project. Finally, our one time commission will be
based on the dollar difference of the cost reduction per unit of
your product. That means that if we do not make you product
cheaper to manufacture - you pay nothing. In that way this service
is risk-free for you.
However, if you product requires design or manufacturing process
optimization, you will need to initiate an engineering
development project with us, which will be priced on separate
terms.
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How
to initiate an optimization project
Our
communication begins with Product Optimization Request Form
(PORF)
The information we collect with PORF is kept strictly
confidential (see our privacy policy)
After
we review your initial data, we will contact you to further discuss
your product.
When we have the minimum information, required for optimization
feasibility research we will start the process.
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