Just imagine the overwhelming feeling a CFO or Operations executive would go through when they discover that many parts in their current inventory, whether purchased or designed, are very similar or identical to ones already existing. How did this happen and why isn’t engineering using something they have already used before? Don’t they know where to look for common or similar parts as part of their job?
This same story is played out almost every day in many companies worldwide. Some worse than others as you can imagine. Now let’s take the scenario a step further to look at the cost associated with this type of behavior.
When an engineer or designer is not able to locate a component which may already exist because they simply can’t find one or do not take the time to look, they will source or create a new part very similar or identical to an existing one. This will often require introducing a new part number into the company which has a cost associated. Before a new part can be brought in it will need to be documented, vendors will need to be identified, manufacturing will need to be involved if it is manufactured and proper quality assurance will need to occur in order to make sure the new part performs as intended.
This and more is the cost associated with introducing a new part into a company. Let’s take a look at a new cost in summary vs. using an existing component:
- Part Number creation
- Design & detail if manufactured
- Performance Validation
- Quality Assurance
- Vendor selection
- Release & approval
- Documentation (minimal)
- Performance (if applicable)
According to the Aberdeen Group, the cost to introduce a new part into a company can run between $4,000 to $23,000 per part depending on the industry. More heavily regulated industries generally have higher costs associated.
Now back to why does this happen? Culture? Not knowing where to look or the lack of training? Now imagine an environment where all processes were clearly documented and repeatable. One where each step guides you to the next. When it came time to source or consider new component for a design you have a situation where results are obtained in almost Google like speed via saved searches or ones you conduct yourself. This is what SOLIDWORKS customers are experiencing today when using Enterprise PDM (EPDM) in conjunction with their design process. EPDM provides a unique seamless interface with your SOLIDWORKS design workflow. SOLIDWORKS users do not realize EPDM is part of their work experience as it becomes almost transparent to them. Learn how easy document management can be when you stop worrying and make EPDM part of your design process.