Why Are My Material Costs Eroding My Margins?

Do you rework expensive designs after you’ve started production, or eat that cost for the high price of reassurance that your product will perform properly in the field?

Being caught off guard with high material costs after the fact can leave you and your organization in a panic. After spending so much time and energy designing and manufacturing a product, the last thing you want to do is rework that design or up your material costs, which both result in lower margins.

Virtually validating and optimizing your designs before they are sent to manufacturing helps you control the material cost and material volume used in production while still creating a fully-functional product. Here are three ways virtual analyses can help you design accurate products faster and stay within or under budget!

  1. Use cheaper material that still gets the job done
  2. Reduce the weight of your product
  3. Minimize rework time

1. Use Cheaper Material That Still Gets the Job Done

All materials have different costs and these costs will fluctuate over time. For example, today, stainless steel is much cheaper than copper. Simulating your model with varied materials helps you determine the cheapest option while simultaneously checking to make sure that your product is meeting the strength and durability requirements – before you cut any metal. Instead of assuming that one material would be the best option because of its strength, verify that inference by virtually testing different materials until you achieve similar strength at a much lower cost.

2. Reduce the Weight of Your Product

Creating products with extra material to ensure strength results in thick, bulky and expensive parts. By running 3D CAD analyses on top of your 3D CAD model, you can significantly reduce its thickness. Now you can create parts that are lighter and can be manufactured faster, reducing the material volume and the shipping costs of your part.

Take a look at this over-engineered part to your right. By running virtual simulations you can quickly discover the smartest way to reduce material volume while assuring the strength and functionality of your part

Over Engineered Part Vs Virtually Optimized Part via SOLIDWORKS Simulation

3. Minimize ReWork

Working smarter to minimize the amount of rework with every design is something every engineer and designer tries to do — or wishes they had the time to do! Optimizing materials early in the design phase helps you to create the most efficient product on both the profit side and on the strength side. It’s not uncommon to find that a product’s production cost is enormous after the design has been sent to manufacturing. Then, your options are to either take time away from new product development to rework it or eat the high cost to keep everything moving along — which are both unfavorable options.

Rebuild Your Margins

When you’re creating designs with less material volume and less overall material used, your products can be manufactured faster and in larger quantities. This increases your products overall revenue and can help to rebuild your margins. Watch the webinar to learn more about virtual design validation and get a closer look at how you can apply these techniques to your designs today!

Want to test out the software first?

Come test drive SOLIDWORKS Simulation 3D design software before you buy it at an
upcoming SOLIDWORKS Hands-On Test Drive event near you!

Stop Guesstimating and Start Validating Your Designs

In just 23 minutes, you’ll discover how to make this bicycle hitch cheaper, lighter and more durable.

Get the answers to questions like:

  • How much load can it endure?
  • What is the lifespan of the bicycle hitch?
  • What type of environments can it withstand?
  • How can you reduce its material costs to stay within budget?
SOLIDWORKS Simulation Screen Capture