In today's landscape, cost is a competitive challenge – both internally and outside the building.
For original equipment manufacturers (OEMs) and others figuring out an industrial electronic solution, there's pressure to offer customer value. There's also pressure to perfect internal processes and make production as efficient as possible.
This is especially true in any design that includes an electronic control panel, which serves as the nerve center for many industrial projects. Not only do they represent a significant investment; they’re also tricky and highly manual builds that go into sensitive applications
Making smart decisions about parts and partners can translate into substantial cost reductions in electronic systems and devices.
Let's explore seven methods proven to streamline control panels and other electronic designs, whether in your facility or in the field.
Unless you're already working with a high-end control panel team, chances are there are ways your design can be leaner and meaner. That can be literal or figurative:
Materials make up 60% of an electronic product’s cost on average. Even the tiniest component can drive that price up significantly.
Many engineers lock themselves into using specific parts early in the design process, leaving little room for cost optimization later on. To avoid this pitfall, embrace flexibility with your component choices.
Don't rule out alternative components just because they weren't your first pick! If you’re outsourcing, team with a supply chain-savvy panel manufacturer to substitute in alternative, lower-cost components that still meet requirements in:
The right manufacturer will have knowledge of past project successes and strong supplier relationships. These qualities can help you score more affordable:
No matter who’s in charge of sourcing parts, keep these best practices in place:
Sometimes it’s hard to see the digital forest (your assembly) for the trees (single components. Don’t overlook the value of optimizing the use of physical space inside your panel enclosure or cabinet.
Sticking to modular design principles allows you to efficiently arrange components and allocate space only where they need it.
Then, think about the size of the components themselves. Select compact components like surface mount devices and high-density interconnects where possible. Then work closely with your builder to optimize the panel’s layout for minimal waste.
Space efficiency for today might not be enough – could there be a change in needs a few years from now? If there’s even a remote chance, consider futureproofing the design.
Allocate extra room – the rule of thumb is 20% – for potential expansions such as:
A little extra space can prevent the need for a full panel replacement later to accommodate updates. The up-front cost is trivial compared to rebuilding from scratch.
Hand-in-hand with physical space is the need for functional headroom with the core components you select. Choose data devices and power supplies with enough juice to handle any features or software updates someone might squeeze in later. possible future feature additions or software updates.
“Simplify, simplify, simplify!”
– Henry David Thoreau
While the writer/philosopher died in 1862 and thus probably wasn’t talking about electronics in his famous quote, the idea still applies.
Unnecessary complexity is one of the biggest culprits behind cost inflation in electronic designs. Consider this your “Is my project getting fat?” checklist:
Start solving this by giving some side-eye to your component count, types, and complexity:
Examine design aspects like wiring layouts, shielding, indicators, and other areas that add complexity. Are all those bells and whistles truly necessary? Removing low-impact frills keeps costs down – as long as you leave in the core tenets of compliance, safety, and functionality.
A control panel manufacturing partner can be an invaluable resource for pinpointing opportunities for a simpler build.
We asked you to be open-minded about alternatives for your go-to components. At the same time, total cost of ownership (TCO) is a real thing.
Be wary of slashing and switching left and right if the changes might compromise critical areas like:
The key is striking the right balance between cost and technical specifications – kinda obvious, but easier said than done.
As you look to reduce costs on your control panel design, resist the temptation to automatically go with the cheapest components and manufacturing.
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The True Cost of Cheap Components |
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Low quality |
Questionable sourcing/screening |
Lack of testing |
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Premature failure |
Compliance issues |
Unreliable performance |
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Early replacement |
Downtime |
Maintenance/repairs |
Faulty or counterfeit parts that cause downtime, repairs, and early replacement quickly erase any initial savings. On the manufacturing side, low-rate fabrication and assembly vendors may sacrifice …
… to undercut others’ pricing. Sloppy builds open the door to defects that don't rear their head until later. At that point, you're facing expensive rework – or scrap.
The boss will never let you totally ignore up-front cost, but they’ll (hopefully) appreciate you making decisions with TCO in mind.
The wise approach is investing in quality, reliable components and sound manufacturing practices up-front. While this raises initial design and production costs somewhat, it can also prevent catastrophe during field use.
The life cycle of a control panel shouldn’t go in circles. You’ve got problems if you’re frequently running into the back-and-forth of:
To sum it up: Find problems while they’re vastly cheaper and easier to fix.
Being thorough in the production phase keeps you from tripping just before or after the finish line. There are several checks and balances you can use:
Yes, testing and low-volume prototyping create some overhead cost. But think of the costs of a failed product launch:
That list doesn’t even include liability issues if your product hurts people or causes major equipment damage. The old adage "measure twice, cut once" perfectly applies to control panel development – even when you’re on a tight turnaround. The people who ship your panels from the production line should never see them again.
You may have amazing design and engineering teams, but trying to handle every aspect of panel production in-house is still inefficient for a non-specialist. Outsourcing certain processes to a panel manufacturing shop can lead to a little more money in your company’s pocket (and a little more sanity).
Take an objective look at your squad’s resources, capabilities, and bandwidth for:
In many cases, leveraging an outside team’s experts, facility, and supply chain connections is more economical than trying to do it all yourself.
Control panel manufacturers invest millions in:
By outsourcing labor-intensive steps like assembly, wiring, or testing, you can avoid the burden of developing and maintaining those skills internally.
When it comes to outsourced manufacturing, the savings go beyond just labor expenses. Partnering gives you access to perks you probably can’t get going solo:
Be strategic in your “make vs. buy” analysis, but don't be afraid to lean on a manufacturing partner's expertise instead of unnecessarily shouldering high-overhead productions yourself.
Many of the more legitimate panel contractors (read: not mom-and-pop shops) offer a suite of value-added services. This convenience allows you to focus on your primary work rather than wasting time and overhead piecing services together separately.
When you bid out an electronics project as an all-inclusive package, you gain the manufacturer’s punching power and economy of scale. Examples of valuable services include:
The benefits of turnkey manufacturing apply to custom panel modifications, too. For example, if you’re looking to reduce costs for an existing panel enclosure design, a manufacturer offering automated CNC machining in-house could:
In the end, a streamlined, vertically integrated approach is simply … simpler. It makes the supply easier to manage and gives you a single point of accountability. Or, to borrow another famous quote:
“Keep it simple, stupid – KISS.”
–An actual engineer this time
By using these seven cost-saving strategies, OEMs and industrial users can optimize their control panel design process, reduce expenses, and increase profitability.
To boil them down in a way Thoreau and the KISS guy would be proud of:
Cost, quality, and timeliness are each an important section of the product life cycle, from sourcing to production to field use. Cost reduction should never compromise quality, safety, or compliance. Balance is what’ll win you this race while others trip near the finish line.
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