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Study Shows that Product Redesigns
Could Slow Foreign Outsourcing

Study Shows that Product Redesigns
Could Slow Foreign Outsourcing

Thursday, September 23, 2004
 
“It can be more advantageous for U.S. manufacturers to lower costs by redesigning products than by outsourcing production to other countries such as China,” concludes a new benchmarking study titled “Improved Product Design Practices Would Make U.S. Manufacturing More Cost Effective: A Case to Consider Before Outsourcing to China.” The study, from software maker Boothroyd Dewhurst, Wakefield, RI, implies that U.S. companies should do a better job of integrating cost analysis into product design, to enable the development of innovative products that are more economical to produce in the United States. Two design best practices identified to make this happen: redesign products to minimize part count and cost; and, carefully account for all of the costs associated with offshore sourcing and apply those added costs to the total product costs. Boothroyd Dewhurst, developer of software for Design for Manufacture and Assembly, offers the text of the study online at www.dfma.com/truecost.

 

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