Cost Reduction

A workshop with a specific objective - Cost Reduction...

Helps companies understand the true costs of their products and generate ways in which to reduce those products costs using a four phase approach: -

• Baseline Product Cost
  The first, and often most important step in the process is to establish the baseline cost of the product.  
• Product Simplification
  Once there is a complete understanding of where the costs of the product are currently coming from, cost reduction efforts can begin.
• Product Optimisation
  DFMA analyses of the product are performed in order to achieve cost reduction through part consolidation.  Part count is the major cost driver in most products, so DFMA can point the team in a direction of cost reduction. Once we have helped the team achieve a simplified product design, we look to DFMA to help us optimise the manufacture and assembly processes.  Simple things like ensuring that parts have locating features can help to minimize assembly costs significantly.
• Supplier Liaison and Verification
  The DFM software tools help in the final stages of the cost reduction effort. In working with individual parts costs we can uncover the major cost drivers allowing you to work more closely with your supply base in the area of cost. 
  Helping our clients establish an unbiased opinion of what part costs 'should be' opens up a dialog with the supply base in order to establish further cost reductions.

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