Our POV: Design Determines 90% of Product Cost

In the New Product Development (NPD) process, 90% of the cost of a product is fixed by the end of the design phase, By this time in the process the direct material, direct labor and product specific capital equipment costs are set in place, whether we fully realize it or not. The ability to control cost is greatest during the concept development stage. Getting manufacturing and suppliers involved early and clearly understanding customer needs from the start are key to managing product costs.

Ways to implement such approach involves careful selection and early collaboration with suppliers for help in making design tradeoffs for customer requirements, functionality, and cost. What is needed is great communication across the design and supplier network that is responsive to customer requests and priority requirements. This effort will reap great dividends for a more salable and profitable product.

Of course, it is important to first probe deeply into customer requests. Is a functional capability a must have, need to have or nice to have? Clarifying and prioritizing of customer requirements provides design engineers with the maximum range of options, and allows them to make informed trade off decisions when handling competing performance and cost goals in the design process. Finally, be sure to evaluate usability to deliver a user-centric design, which is critical for total design success.

With these practices of understanding customer needs and usability and by collaborating with the supplier base during the concept development phase, designers will be in the best position to deliver an optimal design – and to maximize their impact on 90% of product cost from the start.

Sigma Design Company – Turning Smart Ideas into Product Solutions

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SIGMA Networking with Federal Labs and Licensees to Accelerate USA Tech Commercialization

US investment in R&D at federal laboratories has been the fuel for long term US technology advancement and competitiveness – from space exploration to internet development. Now, more than ever, the private sector needs to bridge the chasm between the federal laboratories and the marketplace in order to boost the economy and propel hi- tech job growth. There are opportunities to harvest the $400 billion of annual US R&D spending* for high-tech products and high-wage jobs. Sigma Design Company (SIGMA) is one private company that is taking the lead in this arena by networking with federal labs and licensees and offering its comprehensive service suite for technology commercialization and total new product development.

Major government initiatives, such as the space program and other R&D initiatives, led to significant inventions such as the microprocessor chip, specialty materials, the microwave and the internet, just to name a few. These inventions have forever transformed our communications, social exchange, and lifestyle. Other benefits were the creation of trillions of dollars of economic value and numerous high-skilled and high-wage employment in the communications, computer, aerospace, consumer, media, social network and other industries.

SIGMA is stepping up to leverage its full range of capabilities for technology commercialization with resources of the Federal Labs Consortium (http://www.federallabs.org/). As you know, SIGMA offers concept designs, drawings and prototypes as well as engineering design services in the areas of failure analysis, electrical engineering, and machine engineering. With its new expanded facility in Middlesex, New Jersey, SIGMA offers on-site contract manufacturing cells with lean production and quality assurance services in New Jersey, USA. (SIGMA has several cells available.)

But there is more. One SIGMA collaborator adds industrial and human factor design to the total process; while another SIGMA collaborator adds strategic business design, planning, finance sourcing, market development and IP strategy services.  Such a coordinated Total New Product Development approach enables interactive dialogue and early validation with customers, markets and investors, to better deliver products for market with best ROI.

Contact us today to learn more about transforming patents and technologies into products and businesses. Email us at info@sigmadesign.net or call (732) 629-7555.

*Source: 2012 Biennial report ‘Science and Engineering Indicators (SEI)’ of NSF’s NSB, January 19, 2012 as reported in Manufacturing.net.

Sigma Design Company – Turning Smart Ideas into Product Solutions

Sigma’s Capabilities: Reverse Engineering for New Product Development

SIGMA Design uses in-house gage inspection techniques using 3D Scanning and FARO Technology to verify manufactured parts for products we design, as well as for reverse engineering of components supplied by our clients.

Reverse engineering is a viable method to create 3D manufacturing models from existing parts and system components. The process involves disassembly, inspection, measuring a component and reconstructing it as a 3D CAD model. Once captured the part can be manufactured anywhere to specified tolerances and materials.

Learn more about capabilities of SIGMA Design Company at http://www.sigmadesign.net/brochures.html 

SIGMA Design Company – Turning Smart Ideas into Product Solutions

Smart Hedge Funds Step Up Investment in R&D for Locally Engineered & Manufactured Products

Our Point of View (POV): From Sigma Design Company, LLC

We applaud the hedge funds and private investors who are brave and smart enough to invest today for the technologies of tomorrow.  Early stage technologies, which historically had the highest risk profile, now have a better outlook given the stagnant macroeconomic environment.

As everyone knows, traditional safe industries have been whacked the past few years and others may be on the brink of new unknown disasters. At least many people are sitting on the sidelines on their cash and their backsides.  However, these once conservative plays in steady state businesses are no longer your dad’s (or mom’s) blue chips – and most have very little upside potential.  On the other hand, investments in R&D for emerging technologies and new product development have enormous upside potential with the right mix of success factors and players.

More importantly, investing in U.S. based entrepreneurship and new product engineering provides, and importantly grows, local know-how and good living wages. These are both critical assets that are fundamental to any sound economy and nation and also important for our families and neighbors.  So big kudos to those with the guts to go for the glory of spurring new technology commercialization and local engineering services and manufacturing in New Jersey USA during these uncertain times.

Onward and upward!

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