Cost Reduction

The rush to market a few years ago resulted in equipment / module re-use to achieve lower Time-To-Market (TTM). Volume predictions also often prove to be inaccurate in the fullness of time and this makes the optimum selection of physical design features unlikely. These factors have resulted in the deployment of product solutions with higher than optimum cost for current manufacturing volumes.

It is an established rule-of-thumb that around 75% of the cost of a product is set at the concept/architecture phase. Post-development Cost Reduction (CR) therefore can only expect to access the remaining 25% of the full product cost at best, and a high proportion of this cost will be needed to deliver function. There are therefore often limitations on what can be achieved through Cost Reduction activities, with 5-10% being a reasonable expectation.

Our value proposition is to use our experience in Cost Reduction before the event: in a pro-active way so that the concept delivers the performance required at the optimum cost-point ..... we like to think of it as Cost Avoidance. This enables us to potentially access much greater cost savings by influencing the decision-making earlier in the project.

Ask us about an assessment of your product! We will perform a costed analysis and will present you with a Business Case that will present the Cost Reduction opportunities compared to the cost of implementation.