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Design for cost (DFC)

also: design to cost · cost-down · value engineering

Making cost a design requirement from the start: setting a target COGS, then making architecture, part and process choices to meet it.

Most of a product's cost is committed by early design decisions: the architecture, the number of boards, the enclosure process, connectors, battery, sensors, fasteners, and how the product is assembled and tested. Design for cost sets a target early, allocates it across subsystems, and tracks the estimate at every design review, the same way teams track mass or power.

Tactics include consolidating boards and parts, choosing standard and multi-sourced components, matching manufacturing processes to volumes, designing for automated assembly and fast test, and avoiding over-specification (tolerances, materials, finishes) where it doesn't change what customers value.

Where it bites: cost-cutting late, by swapping parts after validation, can trigger re-testing, re-certification and quality problems that cost more than they save.

Founder takeaway

Set a target COGS before architecture decisions are made, and review the cost estimate at every design milestone.

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