REDUCE MANUFACTURING COSTS AND SHORTEN TIME-TO-MARKET
VALUE & COST ENGINEERING
Preventing unnecessary costs from arising in the first place is more effective than reducing them retrospectively. In the context of Value & Cost Engineering (VCE), companies solve several tasks with ROI-EFESO: they effectively reduce manufacturing costs for new or existing products, shorten time-to-market cycles and avoid change costs in the subsequent steps of the product development process.
We ensure that you can develop products that are as competitive as possible in terms of both manufacturing and follow-up costs. As part of our VCE approach, we rely on proven levers that can achieve quick results to directly optimize your product costs. These include, for example, supplier workshops and should-costing- or cross-functional cost-out workshops.
With ROI-EFESO, you can implement effective VCE programs for these and other key areas:
Results
Companies achieved these results with ROI-EFESO in VCE projects (selection):
Project “From premium to volume market": increasing market share in the volume market segment through a new product family with competitive prices.
Approach:
- Reduction of manufacturing costs on the reference product according to product-specifications.
- Transfer of the necessary measures to all types and variants of the new product family.
- Combination of different cost engineering methods such as supplier workshops and analysis of competitor products.
Results:
- Approx. 100 VCE ideas developed.
- >30% of manufacturing costs reduced on the reference product.
- >50% of the time-to-market shortened.
Utilizing VCE potential in the value creation network
ROI-EFESO supports you in achieving significant results by means of Value & Cost Engineering as well as in a corresponding, sustainable organizational development. In addition to the VCE potential of individual products and components, systems and services offered should also be considered.
The associated ecosystems - e.g. providers of networked products and services - should be included in the sense of "shared responsibility and shared benefits". It is also important to consider and optimize the networking of hardware and software in an integrated manner.
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CASE STUDIES - PRACTICAL EXAMPLES
Cost reduction/restructuring due to market changes
A plant and mechanical engineering company had to ensure its competitiveness. ROI-EFESO identified all the adjustment screws for the necessary changes at a production site in Germany and got the turnaround going with a multi-layered restructuring approach.
Zero-Based Organization
Champions do not rest contentedly with their success, but always have their sights set on the next milestone. A technology group with around 20,000 employees at over 16 locations worldwide is also orienting itself in the direction of such a “North Star”. His starting points: an operational strategy and the initiatives derived from it, which should be implemented at every location in order to make them even more efficient.
Value and Cost Engineering
Cost transformation from premium to volume provider. Mass manufacturers who expand their Product portfolio into higher price segments are not uncommon. A premium manufacturer of refrigeration appliances, on the other hand, takes the opposite approach. What seems banal from a technological point of view is an enormous challenge from a cost perspective. ROI-EFESO accompanied the company in this demanding transformation project.
Streamline production and logistics
The Italian group Marcolin S.p.A. has been designing, manufacturing and selling sunglasses and optical lenses for well-known brands such as Tom Ford, Bally, Moncler, Sportmax and Ermenegildo Zegna for 60 years. In 2018, she sold more than 14 million pairs of glasses through 150 distributors in 125 countries. Optimal management of the fashion company's international supply chains and production processes is correspondingly important.
Safeguarding the site thanks to lean value streams
With hard targets for the entire operations area, a valve manufacturer is aligning a plant location for the future - and thus securing the site in Germany. Together with ROI-EFESO, the company restructures its manufacturing and logistics and achieves, among other things, an OEE of more than 85%.
Cushioning cost pressure with energy management
A dairy group identifies the topic of energy efficiency as a lever to cushion cost pressure from falling production volumes. The case study explains, how the company determines with ROI-EFESO suitable starting points for one of its plants. The potential of the measures in terms of possible energy savings, their CapEx and their amortization are specifically quantified.