Cost Reduction Software

Annual objectives to reduce costs are common across manufacturers as the current business environment is getting more and more competitive. Any unnecessary cost is eroding the profit margin and the competitivity of products.

Cross functional teams look into how to reduce costs in a variety of ways and are typically able to reduce their costs by around 8% but then start plateauing as they are lacking the proper tools and expertise to achieve greater results.

There are techniques used to look for opportunities to reduce costs rather than stumbling upon some. We, at Ahead Consulting, use those techniques to analyze the products and maximize the opportunities to reduce costs. Some of these techniques are listed below.

Tools

Techniques

  • Supplier consolidation

  • Re-source to low cost countries

  • Request For Quotations (RFQ)

  • Product consolidation / component consolidation

  • Supplier cost breakdown analysis

  • Functional analysis / Value analysis / Value engineering

  • Design For Manufacture / Design For Assembly

  • Reverse costing / cost estimation

  • Cost driver analysis

  • Should cost

  • Product benchmarking / Component benchmarking

  • Design to cost

  • Workshops with suppliers

  • Competitor benchmarking

  • Actual design performances vs design requirements

tools to reduce costs

Contact us for more information

You have a project idea and would like to know what’s feasible?





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