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:
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