Colloquia

Summary

To keep a healthy business, all companies need to make a profit, with a total revenue larger than the total costs. On the level of a single product, this translates to the difference between the sales price and involved costs, known as the profit margin. Due to the dynamic nature of the economy, this margin changes continuously. For small businesses or businesses with a low volume and high mix product portfolio this can pose challenges. This thesis aims to develop a framework for increasing the profit margin of a single product of a low-volume, high-mix production company. The framework is established through a case study at a manufacturer of gymnastics equipment. The subject of the study is a movable climbing frame whose profit margin needs to increase. The process followed in the case study is subsequently used to develop a framework for structuring similar projects on other products.

The case study and framework utilise principles of Lean, Design for Manufacturing and Assembly, and various cost reduction techniques to first identify product parts and process operations with improvement potential. Several ideas are developed for these candidates, which are all accompanied by an estimated cost or time reduction. A selection of these ideas is developed further in correspondence with internal stakeholders. In the case study, these ideas are eventually tested in a full-scale prototype on producibility, assemblability, functionality, and aesthetics. The case study showed that a cost reduction of 7 to 18% can be achieved.

The findings of the case study are used to develop the framework in the second part of the thesis. This framework consists of a list of questions users can ask themselves, and actions they can perform, to gain insight into potential improvements throughout all phases of the project: preparation, orientation, ideation, conceptualisation, realisation, verification, evaluation and implementation.