(1) Effect on LCC at each step

It is said that 80% of the LCC of products and equipment is determined at the design stage (see Figure “Effect on Life Cycle Cost at Each Development Step”).

Effect on LCC at Each Development Step

(2) Using concurrent engineering to reduce the time required for preparing to produce new products or use new equipment

One of the most important business challenges companies face today is the need to get new products onto the market rapidly, ahead of the competition. To achieve this, it is essential to slash the time needed to get ready for full-scale production – which means moving from the old-style sequential approach (first development, then production, then marketing) to a parallel approach using concurrent engineering.
Concurrent engineering means implementing two or more phases of a project in tandem – for example, beginning to design the production equipment at the same time as designing the product, instead of waiting until the product has been designed. It aims to shorten the overall project lead time by progressing the various activities simultaneously, based on a clear understanding of how the relevant departments will work together and who is responsible for what (see Figures “How Concurrent Engineering Works” and “The Advantages of Integrating Product Engineering and Process Engineering”).

How Concurrent Engineering Works
The Advantages of Integrating Product Engineering and Process Engineering

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