NTMA
Published

How to Return Manufacturing Jobs to the U.S.: Experts Give Details at Boothroyd Dewhurst DFMA Forum

The good news is that increasingly savvy manufacturers are able to root out troublesome costs and problems from their products earlier and earlier in a lifecycle that starts even before a computer model is created—and ends with finished automobiles, appliances and other goods.

Share

The better news is that they can now use the same tools and approaches to bring jobs back from overseas. According to two experts who spoke at the recent 26th annual International Forum on Design for Manufacture and Assembly (DFMA®), held in Warwick, R.I., the job solution lies in recognizing the hidden costs of offshoring and embracing “upfront engineering” as a business model for innovation and profit creation.

“Traditional corporate and enterprise accounting systems do not generate total cost of ownership (TCO) data for companies locating or sourcing overseas in search of the lowest labor cost,” said Harry Moser, founder of the Reshoring Initiative and retired president of GF AgieCharmilles. 

"When total cost of ownership is calculated,” said Moser, “most companies headed offshore find that they have saved maybe 10 percent, rather than the 30-40 percent they based their decisions upon. When TCO analysis is combined with DFMA product redesign and Lean Manufacturing programs, we’re learning that the gap can close or disappear today—and will definitely close in the next few years.”

The Reshoring Initiative offers free software and an online library of 98 articles to help companies construct a clearer view of the competitive landscape between the U.S. and LLCC’s (Low Labor Cost Countries).

Dave Meeker, product consultant and lecturer at MIT, updated a co-authored study from 2004 on the hidden costs of offshoring and shared his views from the same podium as Moser. 

“Seven years later, the problem of not accounting for total cost continues for most companies,” said Meeker. “Labor is the common metric businesses pick in deciding to take production overseas. Yet, the largest slice of the cost pie is not really the labor content but the material and manufacturing process choices engineers make.” 

“Then, as well as now,” he continued, “redesigns using DFMA show that assembly labor can be reduced an average of 45 percent while creating better functional designs. Add a very conservative 24 percent to offshored product costs to cover logistics, supply chain management and other expenses, and the playing field begins to shift. The evidence suggests that we can start to engineer our way out of the offshoring problem by streamlining designs and understanding the real costs.”

DFMA software guides engineers to assess the structural efficiency of their products and then reduce the assembly cost by consolidating individual parts into elegant, multifunctional designs. Product development teams can examine competing materials and processes and quantitatively judge the cost trade-offs of producing new designs or improving existing products.  

“Upfront engineering, or early analysis, is a fundamental idea used more and more as a business approach by leading manufacturers,” said John Gilligan, president of Boothroyd Dewhurst, Inc. “Companies at the DFMA Forum found significant savings in product cycle times and total costs by tackling design issues earlier in development,” said Gilligan. 

ITT Aerospace Controls, for example, reported 76-percent cost avoidance for a butterfly valve redesign and a threefold increase in factory throughput. International Game Technology (IGT), which produces computerized gaming machines, found 60 percent in cost savings on a new product and realized a tenfold improvement in disassembly times for service operations and system upgrades. 

Regarding the reshoring of manufacturing back to the U.S., Gilligan noted: “The best-performing and highest-quality products are always less labor intensive to assemble. When all the costs of doing business are considered, DFMA can help companies stay onshore by helping engineers design products that are cost-effective to build anywhere, without chasing the lowest offshore labor rate.”

For more information about the Reshoring Initiative, go to: www.reshorenow.org, or call (847) 726-2975. For a download of Dave Meeker’s study: “The True Cost of Overseas Manufacture Revisited Seven Years Later,” go to: http://www.dfma.com/truecost/index.html  or call (978) 621-9258; email meeker@mit.edu.

 

Become a NTMA member today!
NTMA
Gardner Business Media, Inc.
NTMA
Progressive Components
MoldMaking Technology Magazine
KM CNC Machine Service
Forget about long angle pins & hydraulic cylinders
MMT Today enews
Maximum Mold Precision
Techspex

Related Content

ICYMI

MMT Chats: Mold Builder, Master Molder and Marble Maker? Part 1

MoldMaking Technology Editorial Director Christina Fuges introduces new MMT Editorial Advisory Board Member Mike Close, Sr. Tooling Engineer for SMC Ltd. in Devens, Massachusetts. This episode is brought to you by ISCAR with New Ideas for Machining Intelligently.

Read More
Medical

Husky Technologies Showcases Innovation Injection Mold Solutions at MD&M West 2023

This week, MD&M/Plastec West attendees can survey Husky’s latest technologies and services engineered for medical device manufacturers.  

Read More

Mold Builder Uses Counter-Intuitive Approach for Mold Challenges

Matrix Tool Inc. answers customers’ hard questions with creative solutions for cavity spacing, tool sizing, runner layout and melt delivery that reveal the benefits of running in a smaller press size at lower cavitation but higher yield.

Read More
Medical

Mantle TrueShape Advances Medical Mold Manufacture

In a recent case study, Mantle’s 3D-printed inserts enabled a medical device manufacturer to reduce 12-week lead times for prototype mold production to 4 weeks and at one-third of the cost. 

Read More

Read Next

FAQ

How to Use Continuing Education to Remain Competitive in Moldmaking

Continued training helps moldmakers make tooling decisions and properly use the latest cutting tool to efficiently machine high-quality molds.

Read More
Surface Treatment

Reasons to Use Fiber Lasers for Mold Cleaning

Fiber lasers offer a simplicity, speed, control and portability, minimizing mold cleaning risks.

Read More
3D Printing

Are You a Moldmaker Considering 3D Printing? Consider the 3D Printing Workshop at NPE2024

Presentations will cover 3D printing for mold tooling, material innovation, product development, bridge production and full-scale, high-volume additive manufacturing. 

Read More
NTMA