Time to read: 6 min
In today’s hypercompetitive global market, cost-conscious design is a strategic necessity. While innovation, quality, and speed to market remain vital, delivering cost-efficient solutions without compromising performance is essential for product success and customer adoption.
Design for Cost (DFC) is a foundational element of the Design for Excellence (DfX) framework, with Design to Cost (DTC) and Cost Down also relevant as comparative approaches. These methodologies, when supported by management, provide a structured way to align engineers’ efforts with manufacturers’ needs and customers’ requirements, reducing risks and avoiding late-stage redesign costs.
This article discusses the factor of cost in product development through various approaches, It defines Design for Cost (DFC) as the primary focus, briefly compares it with Design to Cost (DTC) and Cost Down, and offers actionable strategies, process-specific applications, and real-world examples to help engineering and procurement teams design smarter from the start, with DFC as the core methodology.
What Is Design for Cost (DFC)?
Design for Cost (DFC) is an engineering approach that integrates cost awareness into every stage of the design process. Its primary goal is to minimize manufacturing and lifecycle costs without compromising product quality or functionality.
Unlike reactive cost-cutting, DFC emphasizes proactive planning by prioritizing cost-specific strategies: setting cost targets to guide tolerance optimization, designing for scalable production volumes, and selecting materials and processes that maximize long-term affordability while maintaining performance.
What Is Design to Cost (DTC)?
Design to Cost (DTC) is a strategic methodology that starts with a predefined cost target. It ensures that all product design decisions align with that ceiling while still meeting performance and market expectations. DTC is commonly used in industries such as consumer electronics, vehicle manufacturing, and aerospace, sectors where strict pricing models or ROI targets dictate product feasibility.
The Difference Between DFC, DTC, and Cost Down
DFC is about intelligent trade-offs with cost considerations, DTC is about hitting a hard cost ceiling, and Cost Down typically involves continuous improvement after a product is already in production, with potential redesign if justified by ROI. This is an overall comparison; in the real world of product development, there may be some crossover and blurred lines between them.
To provide a more precise comparison for engineers, Table 1 integrates key distinctions between Design for Cost (DFC), Design to Cost (DTC), and Cost Down, focusing on their focus, goals, and trade-offs, while incorporating relevant techniques and approaches.
DFC vs. DTC vs. Cost Down
| Aspect | Design for Cost (DFC) | Design to Cost (DTC) | Cost Down |
| When Applied | Early design phase to production | Concept phase | After launch |
| Focus | Efficiency in design and manufacturability | Adherence to a predefined cost ceiling | Continuous cost reduction in production |
| Goals | Optimize cost/performance balance | Meet strict budget while maintaining function | Minimize ongoing costs once in production |
| Approach | Flexible and iterative, analyzing trade-offs | Target-focused and disciplined, enforcing limits | Proactive and data-driven, adapting processes, redesign |
| Trade-Offs | Adjustable compromises in quality (e.g., finish) or production time | Potential compromises in features or materials | (Ideally) minimal impact on quality or design intent, focusing on process efficiency |
| Common Techniques | Cost modeling with trade-off analysis, DfM integration, performance benchmarking | Cost target setting, feature optimization, low-cost material selection | Supply chain and process optimization (e.g., Lean/Six Sigma), material changes, and design simplification |
Common Cost Drivers in Product Design
Recognizing cost drivers early can guide design decisions. Common manufacturing cost drivers include:
- Tight Tolerances: Precision tighter than ±0.005″ often requires specialized tooling, high-end machines, and extra inspection, which can significantly increase production costs, sometimes even doubling them.
- Complex Geometries: Features such as deep undercuts or intricate surfaces typically demand multi-axis machining, custom tooling, and longer setup times.
- Expensive Materials: Exotic materials like titanium, Inconel, or PEEK are not only more expensive than standard aluminum or plastics but also more difficult to machine, which drives up both material and processing costs.
- Secondary Operations: Processes such as anodizing, powder coating, heat treatments, or assembly steps add labor, handling, and inspection time, further increasing costs.
- Supply Chain Complexity: Relying on non-standard or limited-supply components can introduce cost volatility, longer lead times, and supply chain delays.
Strategies for Effective DFC and DTC
Engineering teams can apply targeted strategies to manage costs during the design process using Design for Cost (DFC) and Design to Cost (DTC) approaches. For DFC:
- Optimize tolerances for function, not perfection: Over-specification increases costs (e.g., ±0.01 mm may require precision grinding, while ±0.1 mm suits standard CNC), but loosening tolerances must be balanced against potential impacts on fit, strength, or precision, requiring trade-off analysis.
- Simplify part geometries: Design parts to reduce multi-axis machining needs, avoiding deep recesses across processes like casting or molding, and take advantage of symmetry to enhance production efficiency, weighing this against functional complexity or aesthetic requirements.
- Use standard materials and components: Select materials meeting application conditions with an appropriate safety factor, avoiding high-performance options (e.g., titanium) unless required, to optimize cost without over-engineering.
- Integrate multiple functions into a single part: Combine features (e.g., a molded bracket that doubles as a spacer) to reduce part count and assembly, enhancing cost efficiency.
For DTC, the following strategies can be applied:
- Set clear cost targets early during concept development: Establish a realistic per-unit cost target from the outset to guide design and feature prioritization, with contingency plans (e.g., feature scaling or process adjustment) if targets prove unfeasible.
- Use modular architecture: Shared parts across product families reduce new tooling needs and enable economies of scale, a strategy also applicable to DFC for broader efficiency.
- Substitute materials or simplify non-critical features: Replace costly materials with lower-priced alternatives or simplify non-essential elements, validating with testing to ensure performance, distinguishing this from DFC by its strict budget focus.
Choose DFC for design-led projects with room for trade-offs. Choose DTC when cost limits are business-critical and non-negotiable.
Applying DFC and DTC Across Manufacturing Processes
Cost reduction strategies can be tailored to the unique challenges and opportunities of common manufacturing processes, applicable to both DFC and DTC principles.
Injection Molding
Strategies for lowering injection molding costs include eliminating undercuts to reduce tooling costs, minimizing wall thickness variation for cycle time efficiency, and simplifying gating systems. For low-volume runs, fewer mold cavities or standard bases can lower non-recurring engineering (NRE) costs.
CNC Machining
Approaches to cutting CNC machining costs involve avoiding thin walls or deep cavities to reduce machine time, aligning geometry with standard tool sizes, and opting for lower-cost metals like aluminum over stainless steel to simplify programming and setup.
Sheet Metal Fabrication
Design guidelines include using techniques such as adequate bend radii (depending on the material and thickness), eliminating sharp internal corners, and nesting parts efficiently to minimize material waste, while avoiding non-essential flanges or brackets that require additional tooling or secondary processes.
3D Printing
Methods for cost reduction in 3D printing involve orienting parts to reduce support material and post-processing, combining multiple parts into one unit, and selecting cost-effective processes (e.g., FDM or SLA based on prototype needs) for early production.
Balancing Trade-Offs: Cost vs. Quality vs. Performance
Every design decision has implications. Evaluating performance versus cost is key for both DFC and DTC. Examples are given below:
- Switching from titanium to aluminum may reduce cost and weight, but lower strength; confirm suitability through finite element modeling or testing.
- Relaxing surface finish from 16 Ra to 64 Ra can halve machining time, though impacts on visual appeal or function (e.g., friction) should be assessed by engineers.
- Higher-cost tooling may exceed initial DTC targets but can accelerate launch and revenue; consider this against budget constraints.
- Using cost-benefit analysis and ROI modeling, leveraging tools like CAD simulations or supplier data, to justify trade-offs without undermining product success.
Tools and Frameworks for DFC and DTC Implementation
Successful DFC and DTC practices can be supported by:
- CAD-integrated cost analysis: Provides real-time insights during design using software tailored to the process.
- DFM/DFX feedback platforms: Quoting platforms, like Fictiv’s, highlight costly features and suggest alternatives.
- Supplier collaboration: Early input from partners identifies cost drivers and feasibility. Establish lean manufacturing strategies.
- Lifecycle cost analysis: Evaluates the total cost of ownership (TCO), including operational and maintenance expenses of the finished product.
- Tariff Management: Supplier sourcing strategy can help achieve lowest landed cost.
To implement DFC and DTC effectively:
- Start early: Embed cost targets or optimization goals from the concept phase.
- Use cross-functional teams: Involve manufacturing, procurement, and design engineers to avoid blind spots.
- Iterate and refine: Review cost implications at each milestone.
- Document trade-offs: Record cost decisions and expected outcomes, ensuring accountability.
- Engage suppliers early: Partners provide DFM insights and cost estimates before commitments.
Integrating DFC and DTC for Performance and Cost Control
Design for Cost (DFC) and Design to Cost (DTC) are strategies for designing high-performing, manufacturable products within budget constraints. DFC focuses on efficiency and trade-offs, while DTC ensures alignment with strict cost ceilings.
Both enhance a robust DFX strategy, reducing risk and accelerating time-to-market. By adopting these practices early, teams can deliver value-driven products, making strategic compromises to balance innovation and quality.
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