Pre-study and product costing
The initial design of a product begins with understanding our customer’s situation. We consider their needs, constraints, and Time to Market requirements. We also evaluate the potential market for the product and take into account any economic considerations they express. A suitable design strategy and manufacturing model will then be selected and shared with the customer. The result is a product costing phase according to the customer need (conceptualization of an idea, partial or complete development of the product, product redesign on technical or financial considerations (Design to Cost), industrialization, manufacturing in volume) to estimate a product unit cost in volume and the budgetary of non-recurring costs also called NRE (Non Recurring Engineering costs).
The sharing of experience
This phase is very important and requires sharing all information held by the future client’s teams. This phase is generally done under NDA to protect the ideas and know-how of the 2 companies.
The exchanges take place between the technical and marketing teams of both parties. Exchanges are often driven with many ideas expressed with the aim of finding solutions for the design or industrialization of the product and areas for improvement when they exist. The exploration of solutions is concretized by a validation of ideas to be implemented in line with the target needs.
It is also very often a real satisfaction, on both sides, to have created value and have found a design strategy to solve initial problems and questions.
Product costing
This pre-study phase allows the development of a product architecture that meets the customer’s specifications and make sustainable sourcing choices in order to accurately quantify design and tooling costs as well as material costing to estimate the mass production price according to current market conditions. It also enables to choose the best manufacturing model fitting customer stakes and the most relevant industrial partner for the project.
This product costing can last from 2 to 5 weeks depending on the complexity of the product. It requires defining the electronic schematic, a 3D sketch of the mechanical parts, solutions to the constraints of use and environment (waterproofness, electrical autonomy, mechanical resistance to shocks, lifetime, resistance to chemical external agents in some cases).
A draft “Bill of Materials” is built to estimate the cost of each of the components. The research phase of components and parts is crucial because it also allows to validate the choices made and ensure the manufacturability of the product. We then estimate the cost of manufacturing to complete the product costing.
TXCube commitments
Our experience allows us to quickly evaluate the cost of tools such as injection molds and mechanical parts. We are also able to evaluate, by analogy to past projects, the test benches to be developed for mass production tests as well as the necessary certification costs.
Fixed costs of product development are then known in a precise way as well as product budgetary unit price in volume according to the quantities and the requested production batches.
TXCube is committed to these budgetary prices within the defined scope.
At TXCube, we are willing to invest time on pre-studies because it strengthens
the customer’s confidence and avoids revisiting economic aspects with unpleasant news. We always assume the given price.
Are you ready to entrust us with the pre-study of your product? Carried out under Non Disclosure Agreement, this will strengthen your faith in TXCube’s ability to support you throughout your project.
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