FUTURE-READY COST MANAGEMENT
Cost reductions are often implemented reactively instead of being embedded as a routine organizational practice. However, many current Target Operating Models are already reaching their limits and no longer meet present or future demands.
This raises a cross-industry risk: the inability to respond effectively to evolving market requirements and external changes using a robust cost management approach. It is also significantly more effective to prevent unnecessary costs from arising than to reduce them after the fact.
Together with EFESO’s Cost Value Engineering team, companies implement a future-proof and secure cost management approach. The goal: prepare for market transformation, reduce risk, and maximize product value—developing products that are highly competitive in both production and lifecycle costs.
We work with clients to establish a comprehensive cost management approach covering all product lifecycle stages. Together, we identify gaps, optimize business processes, and empower stakeholders across all operations areas to sustainably reduce costs —backed by hands-on project execution. Our proven, practical solutions are especially impactful in the following focus areas:
Sustainable cost reductions remain a top priority for leadership across industries. Yet, the impact and value of such initiatives can vary significantly.
Where maturity levels in cost management are low, there is considerable potential—additional savings of 10% to 33% are typically achievable, often more. Discover your potential with our Maturity Check.
Achieving meaningful cost reduction requires organization-wide collaboration within an end-to-end cost management framework. Only this ensures that cost savings in one part of the value chain don’t result in increases elsewhere.
Leverage our best-practice expertise to build a cross-functional target costing system that considers these interdependencies and enhances performance. Our approaches include:
As business dynamics evolve, so too must cost value engineering—yet many established models are no longer fit for this.
Use our tested methods and tools to boost competitiveness through modern cost management, including:
“Bottom-up” costing has become a powerful tool to compare actual and optimal costs. Though accurate, it is resource-intensive. The next generation of cost analysis automates this process. Join us in deploying next-gen Cost Value Engineering with:
Optimize your product and investment costs sustainably with us. As part of our integrated cost management approach, we offer services tailored to the cost types most relevant by sales volume—always considering interdependencies.
Sustainable optimization of relevant cost types within your business case through structured target cost setting, monitoring, and control:
Create cost transparency and identify cost drivers to optimize product costs. Key elements include:
Support throughout all project phases – from product definition through concept development to consulting on final negotiations and their optimization:
Cost-optimized design from early requirements to end of production:
Enable employees and partners to drive product cost optimization via professional cost management.
Project “From premium to volume market": increasing market share in the volume market segment through a new product family with competitive prices.
Approach:
Results:
CASE STUDY:
A plant and mechanical engineering company had to ensure its competitiveness. 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.
CASE STUDY:
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.
CASE STUDY:
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. EFESO accompanied the company in this demanding transformation project.
CASE STUDY:
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.
CASE STUDY:
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 EFESO, the company restructures its manufacturing and logistics and achieves, among other things, an OEE of more than 85%.
CASE STUDY:
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 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.
INSIGHT:
Find out how mega casting can help you achieve strategic production cost advantages and reduce your carbon footprint.
INSIGHT:
By identifying and addressing the key cost drivers in packaging solutions, companies can unlock significant savings at both the product and organizational level – while contributing to sustainability goals.
