Product Cost Reduction Services

In the rush to launch a new product to market it is not uncommon to use modules, parts and sub-assemblies that already exist or have already been “tooled”.  These parts often have redundant features and/or non-optimised architectures and this makes them more expensive than they really need to be.

However, as a market matures there is often increased competition and with it more pressure on price (and therefore profit margins).  On the positive side, product life and the forecast for volumes becomes much more certain and there is real data on the cost of part manufacturing, assembling and delivery.  It is at this time that a Cost Reduction exercise can be highly lucrative and bring other real benefits.

cost-reduction-engineering services Warley Design has the design and manufacturing expertise to undertake a detailed post-development exercise in product cost reduction using best-in-class methodologies.  We will consider a wide range of variables, such as product variations & design features, manufacturing methodologies and processes, material choices, assembly techniques and shipping, and can offer a comprehensive, detailed and honest appraisal of the Cost Reduction potential.

Other reasons for looking at potential for re-design may include part obsolescence and modifications to the physical design to comply with differing regulations such as WEEE and RoHS.

Ask us about an assessment of your product!  We will present you with a business case that compares the potential return on investment of the Cost Reduction opportunities against the cost of implementation.

Or better still… cost avoidance!

It is an established rule-of-thumb that around 75% of the cost of a product is set at the concept and design phase.  Manufacturability and cost reduction cannot be an afterthought – they shape the very concept, influence materials and selection of production process.

While there exists the potential to review and reduce manufacturing costs post-development, far greater savings are made by considering manufacturing efficiency early in the design stage or a product where the architecture can be influenced to much greater affect.  We like to think of this as Cost Avoidance.

Warley Design has the experience and technical ability to pro-actively incorporate Cost Reduction disciplines early into the design and development stage of a product’s life.  This enables us to potentially access much greater cost savings by influencing the key decision-making earlier in the project.

If you would like to reduce the cost of your products then call on 01277 261066 or email us.


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