Design & parts
Function, geometry, part count and tolerance demands.
Solutions / Product Cost Reduction
Product Cost Reduction & Value Engineering
Your product works. The cost needs work.
Lower manufacturing cost without losing what makes the product work.
Discuss product costA better cost decision
01
Where does the cost really come from?
02
Which changes protect required performance?
03
See what the work involvesDo the savings justify the change?
Your starting point
Your product is already designed or in production, but it costs too much to make. Look at the design and the way it is manufactured before assuming a cheaper supplier is the answer.
Where is the cost coming from?
Start with the product requirements, production volumes and current cost breakdown. Compare potential savings with tooling, engineering, testing and other costs of making the change.
Review the product
and the way it is made.
Materials & finish
Required properties, specification and processing.
Manufacturing
Process choice, tooling and production volume.
Assembly & quality
Access, sequence, testing, rework and yield loss.
Supply chain
Order assumptions, components and logistics.
Recurring cost opportunityOne-time change costPerformance & quality validationImplementation decision
Compare savings with the cost of the change before choosing an option.
From assessment to implementation01 02 03 04
Establish the current cost
Use the available BOM, quotations and production data to separate materials, components, processing, assembly, testing and quality losses.
Find practical opportunities
Review part count, materials, tolerances, finishes, manufacturing processes and assembly. Identify cost drivers that can be changed without compromising required performance.
Compare the whole change
Account for recurring savings, one-time costs, order quantities and lead times. Check whether a saving creates extra inspection, scrap or inventory elsewhere.
Validate the changes
Prioritize the most promising options. Check samples or trials, release approved revisions and compare production costs with the original baseline.
What to bring
- Current product, BOM, drawings and annual or batch volume
- Available cost breakdown and quality-loss information
- Performance requirements and limits on acceptable changes
What the work can deliver
- Cost baseline with assumptions and data gaps
- Opportunity register with engineering rationale
- Options comparison including one-time change costs
- Validation and phased implementation plan