Design for low-cost country sourcing: Defining the interface between product design and production

Abstract

Not every product can be successfully sourced in low-cost countries. Disadvantageous cost structures or extremely complex workpiece designs are the most frequent reasons for failures. A design that has been tailored to low-cost country sourcing offers the possibility of increasing potentials while reducing risks and costs at the same time. This paper highlights different possibilities to define the interface between product design and production in low-cost countries, identifies the factors influencing the design, deduces basic principles and illustrates guidelines for an adapted product design.