Using design automation to reduce costs and improve profitability
By Sharon Toh, General Manager, South Asia of SolidWorks. Across most industries today, profit margins are narrow and will continue to become even thinner. Even in segments where margins are relatively healthy, competition and global outsourcing make cost reduction mandatory. Historically, the high cost of engineering has contributed so significantly to the attack on profit margins that numerous attempts have been made to cut the process time or the cost of engineering activities. Most of these approaches have been point solutions, which can be highly important in their own right, but are not applicable across the board. Design automation, on the other hand, stands out as an effective means of dramatically cutting costs for a well-defined, well-proven range of engineering activities. This is especially so where business needs demand rapid, accurate quoting; consistent engineering; and, most important, minimum time to finished product delivery. Driving design automation The majority of companies share a common goal of reducing design costs. Traditionally, they have had two options: (1) to design less and standardize the product range, or (2) to design faster. If you want to limit your customers’ choices, the first option is fine. However, the pressure to customize products has risen tremendously over the past few years. In a recent Cincom study, 73 percent of total respondents viewed product customisation as critical for products over $100,000, while another 25 percent considered it crucial even for products under $1,000. This trend will only grow. The Cincom study revealed that 63 percent of engineers have seen requests for customised products increase over the last five years, and 26 percent anticipate that the growth rate will be between 25 and 50 percent in the next two years. Another survey of CAD users asked key questions about the users’ design processes. All survey respondents were aware […]