SEER Year 1 Savings Over 1.5 Million Euros At Philips Medical

January 5, 2009 · Filed Under Design for Manufacturing Estimating, Estimating, General  - 1 Comment(s)

It is exciting to see how Philips medical quantified their first year savings by the application of SEER to reduce costs and ensure a fair price from their outsource partners.

  1. SEER To Drive Cost Effective Design:
    “    One of SEER-MFG’s strengths is its ability to influence design decisions, pointing the way to the simplest and most cost-effective solution”.    This became evident to Pruijsen’s team during one of the pilot projects when they used SEER-MFG to calculate the cost of the parts for a new patient table. “We discovered that SEER-MFG is an interesting application because if you have a solution in mind it allows you to check on the cost and see alternative technologies,” he said. “A mechanical designer might not consider certain technologies because they are out of his experience. But if you can quickly calculate different scenarios, you can determine their cost impact and the amount of investment needed in areas like tooling.
  2. SEER for Fair Pricing (Should Cost) In Outsource Situations: “They eventually settled on a final price of 350 Euros-about one-third of the original quotation.
    “Without SEER-MFG, we might have been satisfied just reducing the price 10 percent to 900 Euros through negotiation. In the end the tolerances for this particular part were found to be much higher than necessary; the lower specifications allowed the supplier to significantly reduce his price. Of great impact and as a reflection back to our engineers is, that with SEER-MFG you directly can show the cost impact of the tolerances, technology and materials they choose, and then discuss what is good enough. This really drives costs down during the design stages.”
  3. SEER Viable Parts Estimates In Minutes:
    “After we showed Galorath a drawing of a random part, 15 minutes later we had an estimate on the tooling cost. Four days later we got a quotation on the tool. The SEER estimate was within 2% of the quote.”
    The full Philips case study may be found here. Note SEER-MFG was formerly called SEER-DFM. It provides insight on how to design parts and systems for the most cost effective manufacturing.


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Comments

One Response to “SEER Year 1 Savings Over 1.5 Million Euros At Philips Medical”

  1. JRS Medical on May 29th, 2009 9:57 am

    I keep hearing about SEER. One of my friends over at Adronics-Elrob Manufacturing Corporation
    is thinking about a possible purchase of this software for 2010. Seems like it could help them out on a number of projects. Definately appreciate this blog and the updates you post.

    James
    JRS Medical

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