Design collaboration involves integrating suppliers into the product design process. This leads to lower costs, improved quality, and decreased development times. For example, when Gold Corp collaborated with two Australian mining companies on 3D mine depictions, its production increased by over 450,000 ounces annually while costs decreased. Effective design collaboration considers logistics, manufacturability, and gaining mutual understanding between partners. It allows 80% of product costs determined early to be lowered and coordination of multiple suppliers.

1. DESIGN
COLLABORATION
By:
Arun K S
Ist sem M.tech
SJCET PALAI
ksarun1987@gmail.com

2. OUTLINE
Key sourcing related processes are:
 Supplier scoring and assessment
 Supplier selection and contract negotiation
 DESIGN COLLABORATION
 Procurement
 Sourcing planning & Analysis

3. DESIGN COLLABORATION
• Integrating supplier in to design phase of Product
development.
• Eg: Gold corp Inc.
– They collaborated with Two Australian companies for 3-
dimensional depiction of their mines.
– This led to increase in their production rate from 53000
ounces @ $360 an ounce in 1996 to 504000 ounces @ $ 59
per ton in 2001.

4. Design collaboration

5. Factors to be considered while Design
sourcing
• 80% of cost of product is determined during
design stage. So active participation of supplier is
needed in this stage.
• 50 – 70% of spending at manufacturer is for
procurement process (during delivery of
outsourced parts). So this has to be lowered.
• Coordination is necessary if dealing with a
number of suppliers.
• Mutual understanding with customers.
• Manufacturer should act as a design coordinator.

6. Mutual Understandings
1. Design for Logistics
2. Design for Manufacturability

7. 1. DESIGN FOR LOGISTICS
• Attempts to reduce Transportation, Handling
and Inventory costs during distribution by taking
appropriate actions during Design.
• To reduce Transportation and Handling cost
manufacturer should convey information's about:
– Expected order sizes
– Packaging details (to be compact & Easiness for
stacking).

8. 1. DESIGN FOR LOGISTICS contd……
• To reduce Inventory cost Primary approach is
to postponement or mass customization:
– Postponement: Aim is to design a production and
production process so that features that
differentiate the end product are late in
manufacturing Phase.
Eg: Dell designs it’s PC’s after customer order
comes. This helps them to lower inventories by
aggregating them as components.

9. • Mass Customization: similar approach as that
of postponement. Here design is so that
inventory can be carried in a form that
aggregates across multiple end products.
• Customization occurs along following 3 stages:
– a. Module customization: Product is designed as
modules. Eg: PC assembly at dell.

10. -b. Adjustable customization: All inventory is
maintained in a single product. Eg: Washing
m/c designed by Matsushita.
-c. Dimensional customization: Eg: National
bicycle which cuts frame tubing to fit
according to size of customer.

11. 2. Design for Manufacturability
• Attempts to design product for ease of
manufacturing.
• Key principles used while designing
manufacturability are:
– Part commonality
– Designing symmetrical parts
– Combining parts
– Using catalogue part rather than designing new one
– Design parts to provide access for other parts and tools.

12. Advantages of design collaboration
• Design collaboration can:
– Lower material purchase cost
– Lower logistic cost
– Lower manufacturing cost.
– Design collaboration is also helpful for a company
which tries to produce a lot of variety and
customization.
– Increases product development time significantly.
– Cost decreases by 20%, Quality improves by 30%,
Time to market decreases by 50 %.

13. Conclusion
• Design collaboration helps a firm to reduce
cost, Improve quality and decrease time to
market.
• Ensuring of design for logistics and design for
manufacturability by manufacturer.
• To be successful, manufacturers should
become effective design coordinators in
supply chain.

14. THANK YOU