The entire medical device manufacturing landscape is dominated by regulatory norms EU MDR 2017/745, and big investments in manufacturing, branding, and distribution. The strict regulatory norms add to the manufacturing cost at different phases of development. But since the process cannot be shortened and time-to-market is the priority, cost optimization often takes a back seat. But, with global MedTech giants outsourcing manufacturing to reduce cost, value engineering has become a primary focus.
What is Value Engineering of Medical Devices?
Value Engineering in Medical Devices is the key to strike a balance between innovation, cost, and quality. The process involves critical analysis of the manufacturing process and product to find out potential areas where investments can be optimized without compromising the quality and functionality.
To add more clarity here we debunk 6 myths to help proper implementation of the practice across organizations.
Myth #1: Value Engineering is about putting quality at stake
Value engineering does not mean putting quality at stake. Rather it means finding potential quality alternatives that can be put into use to optimize cost. This may include areas like vendor analysis, de-conceptualizing the design to reduce the number of parts required, and eliminating unnecessary functionalities that offer no value to the end-user.
Myth #2: Value Engineering can be considered at the end of the manufacturing process
You’re done with medical device conceptualization and the entire process of manufacturing is already in place, now sitting down at your R&D table, it’s completely futile to think about value engineering. Value engineering is a continuous evaluation from day one to optimize the manufacturing cost. All aspects of design, engineering, quality maintenance, regulatory, supply chain, and branding necessary to pen down a more concise list of everything you do to identify areas of cost-cutting. Every component substitution, or additional feature must be analyzed to enhance cost optimization and subsequently boost product value.
Myth #3: Value engineering negatively impacts user experience
It’s often felt that removing a certain feature or modifying the design can negatively impact the user experience. But, it’s important to understand that unnecessary features that are rarely used by the end-consumer only add to the cost. It’s completely fine to get rid of the unwanted features so that the product manufactured offers a substantial value to the end-user. Add more…
Myth #4: Value Engineering is only about maximizing the ROI
Yes, the core purpose of value engineering is maximizing ROI but it doesn’t mean it’s only ROI that matters. The critical analysis during value engineering also reveals several other areas of improvement. For instance, while performing a design analysis you may encounter a scenario where you realize that a cost apportioned specific area can be reduced to make the investment more worthy in some other area where you were not focusing earlier. Analysis everywhere opens ways for improvement.
Myth #5: Value Engineered Medical Devices do not deliver on innovation & creativity
It’s often believed that innovation is compromised for medical devices where value engineering is paramount. Also, manufacturers often feel that designing an innovative medical device requires enormous cost but that’s not always the case. Often value engineering involves optimizing the design on various grounds to make it more user-friendly. This means value engineering can also be the reason for an innovative product.
Myth #6: Cost optimization & Cost reduction are same
Cost optimization in general is understood as the technique to reduce the overall manufacturing costs. But, it’s important to understand that it doesn’t only mean reducing costs. Sometimes it may also imply just doing an analysis of a situation to identify areas to balance the investments. For instance, you might come apportioned in one area can be utilized in other area to improve overall product appeal. In an organization shifting, reducing, or adding cost at any step, all fall under cost optimization.
To understand relevance of value engineering in Medical Device Manufacturing let’s explore a case ahead.
Case:
Optimizing cost through vendor analysis and Regulatory Assistance
Challenge
The muscle sculpting device came to Johari’s desk with a very high manufacturing cost. The client also had a major concern about entering the European market with this product. With current pricing and given features this did not look feasible.
Solution
At Johari labs, the Product engineering team critically tore down every module of the product to revisualize the model at an optimized cost.
Leveraging an authorized network across multiple geographies, Johari reduced the overall procurement costs. The industrial design and user interface were enhanced by adding smart id- Software solution to the device. Additionally, utilizing the regulatory experience with European markets, the team assisted the client in penetrating the European Markets.
Business Value:
All together the device was a market success and widely accepted in its domain. The functionality and competitive pricing have made it one of the preferred choices amongst the market bulk buyers and end-users.
No Regret in Cost Cutting
It’s a popular belief that opting for a cost-cutting strategy is needed only when an organization is undergoing a financial crisis. But this isn’t always necessary it’s important to have a proper cost-cutting strategy in place to ensure better value at all times.
An organization in the Medical Device Manufacturing domain or any other domain requires a proper strategic plan to timely evaluate the costs at various levels. This prevents sudden loopholes and keeps improvements aligned across day-to-day functioning.
As a growing organization Johari Digital Healthcare Ltd adopts a value engineering approach to deliver quality at an optimized cost. Balancing investments & technology is an art and as a 40+ years global Medical Device Manufacturing company, Johari excels at it.
Schedule a consultation for value engineering in your existing medical device.