When organizations overcome and achieve their reuse goals, the direct and indirect savings can be significant. IBM demonstrated this through its seven-year transformation project. The company succeeded in boosting part reuse from 2% to 59% and:
- Dropped abandoned project expense from 25% to 1%;
- Cut average time-to-market from 70 to 18 months; and
- Turned an $8B loss into an $8.4B profit.
One of the most significant contributors to this positive performance was the sharp increase in designer and engineering productivity thanks to greater parts reuse.
The Aberdeen Group estimates that engineers spend up to 45% of their time searching for or recreating parts that already exist. The loss of valuable engineering time can be significant in sectors whose products include high volumes of simple parts, like industrial equipment, big-ticket consumer goods, aerospace and defense, and transportation.
Consider, for example, a typical automotive engine. Simple fasteners make up more than 40% of the engine’s components. If simple parts like this can be standardized and easily reused, the number of valuable engineering hours that can recouped for higher value tasks is very high.
Learn more about the 3DEXPERIENCE EXALEAD OnePart Sourcing & Standardization solution.