Describe the Architecture of a Swiss Army Knife

Assignment 5

New Product Development (US & Global) (MRKT 450)

List 10 reasons why reducing the number of parts in a product might reduce the production costs. Also list some reasons why costs might increase.

1. Substitute Lower Cost Materials Where Possible

Products are manufactured using different kinds of materials depending on the marketplace requirements and the manufacturers practices. The improvement on technology constantly change old materials and creates new ones, making the prices going up and down due to political goals as supply, demand, and processing methods changes. When it taking under consideration the changes on materials recognizing all factors involve are crucial. As an example, substituting carbon steel for a higher- cost stainless steel may safe money, but will reduce the corrosion protection that may be a more valuable product feature for the consumers. Also is important to take under consideration that changes the composition product may be worthwhile, even when the material costs are higher due to a simplified a process during production.

2. Reduce Waste

Engineers typically when design product doesn’t take under consideration the production consequences particularly how non-standard purchase units of size, volume, or weight need to be modified to create the final product. The production methods are established to minimize the cost of the highest components of the product. Like labor or materials, at the time the methods are established. For example if the raw material cost is low, the excess material or “scrap” won’t be consider to be important relative to the cost, but prices for materials and labor may go high. This will alter the ratio between the two elements and their expense, so the “scrap” material may become excessive. The modification of product designs and altering production methods in order to utilize standard raw material units may reduce excessive scrap and its associated costs.

3. Eliminate...