RESOURCES

GGI in the News
Reading Rooms
Press Releases
GGI Webinars
Primary Research
Research Product Development Conference Seminar
GGI Podcasts
GGI Summits

PUBLICATIONS

Complimentary
Publications
GGI Rnews

GENERAL INFORMATION

Book Library
Calendar
Bibliography

SOCIAL MEDIA

Driving Product Development™

GGI Blog Signup
GGI Blog Home

Tangible Innovation!™

GGI Blog Sign-Up
GGI Blog Home

Follow Us on Twitter

Twitter

ARCHIVES

Tangible Innovation Archive
Rapid News
Gateways
GGI Summits

CLIENT SERVICES

Private Research
Secure Access Area

Sitemap
 

Cost Avoidance

A $600 investment can save you 6 figures of cost!

If the typical internal billing rate for engineering is $75 per hour, then $600 is 8 hours. This translates into 2 people working 4 hours, 3 people working 2.5+ hours, or 4 people working 2 hours. Each of these three scenarios is a possible design review activity depending on the company and type of review.

Any one single error, if caught late into the product launch, can easily generate a six figure cost to fix it. Worse yet, the pressure to fix the problem is intense as the fix can't be done soon enough. If there is not a single big error, there are often 25-100 smaller change orders on products prior to their release and often an additional 25-100 change orders after the product is released. These smaller change orders add up to six figures as well. The cheapest engineering changes, typically found in software-only environments, average $1500 per approved change order. The typical low-end range of engineering changes in mixed-design environments, average $2000-3000 per approved change order. A high-end figure, common to complex products and regulated industries, average $10,000-$12,000 per approved change order.

It seems like we can and do always find the time to "run after" a product that is found to have problems. We do this under time and resource pressure, under management pressure, and too often under the scrutinizing eyes of customers. Why then is it so difficult to find the time in a more proactive manner to attempt to eliminate these high stress business activities?



Home | Profile | Experience | Trademarks | Gateways to Knowledge® | Design Reviews | Products | iStore | Contact Us

Sitemap

Goldense Group, Inc. [GGI]
1346 South Street, Needham, MA 02492

P.O. Box 350, Dedham, MA 02027-0350
Phone: (781) 444-5400   Fax: (781) 444-5475

Privacy Statement

Copyright © 1996-2017 __ Goldense Group, Inc. __ All Rights Reserved.