Methodology of Outsourcing Design and Engineering Process

The primary goal of world manufacturing companies is to increase profit. Cost reduction is one of the important levers to increase profit. Outsourcing of the design and engineering process is getting more popular as the means to reduce cost. This chapter proposes a methodology to outsource the design and engineering process. The methodology was developed based on previous experience with production preparation process reengineering, with special emphasis on two technical points: The first point is a visualization technique for the information flow between the design and engineering tasks by using their background relationships. The second point is an integrated technique for the process optimization using the Design Structure Matrix and the skill level bottleneck analysis with a design process simulation. Key findings are shown through applying the methodology to the design management process. © 2006