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Unlocking Efficiency: Managing Part Proliferation to Reduce Costs and Complexity

25.11.2024 | Reading Time:

In the manufacturing industry, the design and introduction of new parts are necessary to foster innovation and meet market requirements. At the same time, each new part increases complexity and incurs costs. For this reason, part proliferation needs to be managed to uphold efficiency.

The manufacturing industry is characterized by constant change due to innovation and demanding customer requirements. To navigate these changes under time pressure, the introduction of new parts often seems the easiest and fastest way to meet the demand. Experienced design teams can design the needed component much faster than searching for existing ones would take, especially if the required data is stored in decentralized locations. From the perspective of a single cost center, this approach may seem lean, pragmatic, and cost-optimized.

The real problem, however, lies in the downstream process triggered once the part has been designed and released. A whole cascade of activities must be performed before the freshly designed part finds its way into the physical assembly process and is integrated into the final product. For example, procurement needs to align with potential suppliers of the new component for feasibility, delivery time, and costs. Manufacturing planners need to ensure that work plans and tools are in place and that the new part is integrated into the manufacturing setup. With new regulations concerning environmental protection, the absence of forbidden substances must be ensured, and the presence of potentially hazardous substances needs to be analyzed and reported. These are only a few examples of the things that need to happen after the design of a part has been released. It is easy to imagine that for this reason, each new part is connected to significantly higher costs than the part design alone and that each design that is reused directly contributes to reducing costs.

In addition to the costs related to new part introductions, new parts also increase complexity in the organization. Data management, inventory management, and logistics are just some of the areas challenged whenever a new part is introduced.

For these reasons, we recommend analyzing the current state of part proliferation in your organization and initiating the following countermeasures:

 

  1. Regular reports showing the number of new parts introduced across sites and departments.
  2. Increase cross-functional awareness to focus on gobal optimization rather than silo-specific improvements.
  3. Improve data management to facilitate finding and reusing existing parts and designs.
  4. Product modularization to meet market requirements with a limited variant space.

Managing part proliferation is not just about reducing complexity—it’s about unlocking efficiency, agility, and competitiveness in today’s fast-paced manufacturing environment.

As JMBC, we offer our support to navigate the complexities of part proliferation, driving tangible results and positioning your organization for long-term success. Contact us to learn more about our services.

Thomas Jäckel
PLM | Process Management

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