Product Cost Optimization

In order for manufacturing companies to be truly competitive they must reduce material cost consistently and effectively through the entire product life cycle. Guidelines for such optimization measures are defined usually based on competitor analysis and product cost calculations. Short term cost reduction potential can be achieved by re-negotiation of purchasing contracts with the suppliers, whereas long-term effects are most often achieved through technical measures applied to series production. Realizing lasting cost reductions is challenging and varies greatly depending on many factors. The cost of realization must also take into account the added costs for the validation. Through a change bundling process we can reduce or allocate these costs and minimize the time to break even.

We can lead you through a complete cost optimization process, from the start of the project through its full implementation. We ensure a successful cost reduction program through the following phases:

  • Identification of cost reduction ideas
  • Feasibility analysis and evaluation
  • Procurement process review
  • Planning and cost optimized bundling of measures for validation
  • Final implementation of cost reduction measures
Murugathas Sutharshan

Companies frequently focus on cost management only after start of production. In this case, interdisciplinary thinking and a process guided approach are key to sustainable cost reduction while keeping quality high and investments low.

Sutharshan Suwi Murugathas, Partner
PEC project engineers & consultants
Königsallee 14
40212 Düsseldorf
Tel. 0211 / 13866 381
Fax. 0211 / 13866 382
PEC project engineers & consultants
Uhlandstraße 14
70182 Stuttgart
Tel. 0711 / 24837321
Fax. 0711 / 51890301
PEC project engineers & consultants
Mozartstraße 18
38442 Wolfsburg
Tel. 05362 / 9471197
Fax. 05362 / 9471198
PEC project engineers & consultants
Allmandstraße 22
88045 Friedrichshafen
Detroit, USA
PEC project engineers & consultants Corp.
194 East Main Street
Northville, MI 48167 USA
Tel. +1 (248) 238-2707