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Allocating Responsibility for Manufacturing Cost

Hypertherm's implementation of DFMA software offers a business model for improving U.S. global competitiveness.

By John Teresko

Aug. 1, 2008

Hypertherm is a good example of what can be accomplished by deploying engineering technology as a foundational strategy, points out John Gilligan, president of Boothroyd Dewhurst. "They are integrating their DFMA program with lean concepts, smart use of automation, employee empowerment and other outstanding approaches. Most unique from our perspective is that Hypertherm carefully tracks cause and effect -- from the DFMA design station to the shipping dock. They monitor the correlation between part count reduction and business improvement." The profit results should send a strong signal to other U.S. manufacturing industries about what can be achieved through redesign, adds Gilligan.

Chart reveals (in units of 100%) the results of five years of product redesign with DFMA software at Hypertherm Inc. The blue line shows the percent reduction in warranty costs per unit of product. The orange bars show the percent increase in profit per square foot of factory floor space.

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