Shorter product life cycles and increasingly aggressive global price and quality competition force companies to constantly review their product and manufacturing costs. In volatile industrial markets, the ability to quickly and flexibly adapt their own product portfolio to changing customer requirements is becoming a decisive competitive factor.
Against this background, integrated Value & Cost Engineering (VCE) provides suitable instruments to effectively and quickly optimize product and manufacturing costs at any point in the product life cycle. This enables companies to meet customer needs optimally at all times - and at the best possible price. At the same time, VCE helps to reduce time-to-market and thus to secure market shares in competitive environments.
In contrast to traditional cost management, the VCE approach of ROI is based on a holistic approach, which derives the permissible product costs based on market and customer requirements and supports companies with a comprehensive set of methods and tools to optimize their development and manufacturing costs up to industrialization. In doing so, ROI includes various functions within and outside the own organization, such as suppliers, service providers, customers or dealers, and considers product-relevant costs over the entire product life cycle. In addition, to ensure a sustainable optimization of profit planning and cost management, ROI supports the establishment of a VCE organization adapted to the respective company with the corresponding processes, roles and responsibilities.
VCE support in all phases of the product life cycle
ROI has extensive experience in the design and implementation of cost optimization measures within the scope of Value & Cost Engineering. We accompany our clients through all phases of the product life cycle, from immediate measures to reduce manufacturing costs for existing products, to the redesign of a product family, to the institutionalization of measures within a VCE organization. This includes:
- VCE QuickWin cost reduction: Rapidly effective cost reduction for products ready for series production (redesign) using proven cost reduction methods, such as supplier workshops, should cost analyses, cross-functional cost-out workshops including teardowns, and much more.
- VCE End-to-End Approach: Continuous roadmap for the complete redesign of a product or a product line, taking into account the minimization of product lifecycle costs in the sense of a true end-to-end approach, including project and implementation management, market and customer analysis, material cost optimization (e.g., cost of materials), cost reduction, and cost reduction measures.e.g. BoM Transparency, supplier workshops, supplier management), cost management (e.g. target costing, zero-base budgeting), cost reduction methods (e.g. design-to-cost, functional analysis, OPEX optimizations and make-or-buy considerations) and industrialization (implementation and support of series production start-up)
- VCE organization: Development and integration of VCE measures into the product development process (PEP) as well as comprehensive employee empowerment through training and continuing education.