Cost Engineering

RECONCILE TECHNOLOGY & COST THROUGHOUT THE PRODUCT LIFECYCLE


OUR EXPERTISE

  • PRODUCT COST ANALYSIS & MODELS

    Product cost analysis is a prerequisite for cost optimization in development and purchasing throughout the entire product lifecycle. With our longstanding expertise in product costing, we identify cost drivers and link them to product functions. This gives a reliable basis for product decisions and optimization strategies.

    Our in-depth knowledge of cost structures and mechanisms enables us to create cost models which map system cost based on specifications, design characteristics and premises.
  • TARGET COSTING

    In a dynamic competitive environment, it is more important than ever to set the right targets to make effective use of development time and resources. With our Target Costing methodology, we help you master the cost versus function tradeoff in the product development process. For both components and functions, we define a target price in line with the market, and guidance on priorities and actionable plan. We also evaluate to what extent target achievement is linked to your company organizational structure.
  • DESIGN TO COST

    With Design to Cost, we close the gap between cost target and cost status. Cost reduction idea generation is a creative process which we can offer support with additional contributions by leveraging our large benchmarking databases. By providing timely cost evaluations regarding savings and investments, our Value Analysis / Value Engineering (VA/VE) experts and consulting team create the transparency needed for you to make informed decisions for product cost savings.
  • COST BENCHMARKING

    Cost Benchmarking of your competitors’ products provides valuable insights for your own product’s competitive position and technical implementation. We compare both, total cost and functional cost, which helps to understand features and performance differences and their cost, underlying requirements and potential selling prices.
    Our procedure guarantees real added value based on our neutral expert perspective and comprehensive knowledge.

EXAMPLES OF OUR LATEST PROJECTS

WHITE GOODS MANUFACTURER ACHIEVED 32% COST REDUCTION WITH DTC PROJECT
By executing a benchmarking and a subsequent Design-to-Cost project for a white goods manufacturer in the food industry, we have identified a cost reduction potential of > 40% based on technical design. 32% was validated and implemented by our client. In parallel, the bottom-up cost analysis of the complete system - mechanical, electromechanical and electronics – identified a commercial cost saving potential of 18% for short term cost reduction initiative.


QUICK OPTIMIZATION OPPORTUNITIES FOR SUPPLIER ON ITS ELECTRICAL POWERTRAIN OFFERS
We have created an innovative cost model for the purposes of cost simulation and prediction under technical and commercial scenarios. The technical variance is based on structural concepts (integration level, etc.) and the full parameters are set (performance, efficiency, power density, etc.) including the outlook of technologies (Cells, SiC, GaN, etc.). The commercial parameters set are related to country specific factor cost, volumes and SOP. This approach helps our client optimize the powertrain on a system level and accelerate the RFQ process towards OEMs.

HV INVERTER SUPPLIER REDUCED COSTS BY 27%
For a Tier 1 supplier, we have analyzed the best-practice cost structure of a High Voltage inverter during the RFQ phase. This gives an indication of target costs for purchasing and production. Given the expected cost target of the OEM, further support from our side has been requested. The next project phase was focused on design-to-cost. The result of this phase was an omitted cost reduction of 27%. Because of this project, the supplier was able to deliver a decisive competitive advantage to be selected as the vendor with SOP in 2023.

SURVEY ON COST IMPACT OF MODERN E/E ARCHITECTURE
We supported an OEM in the Asian market to understand the electrical / electronic (E/E) architecture of the next evolution step – from domain to zonal architecture - recently launched. The focus was related to body electronics and power distribution. The study indicates the motivation to introduce a Service-Oriented -Architecture (SOA) and cost reductions of>20%.

OUR PEOPLE

KatarinaSchulte
Katarina Schulte
General Manager - ECS
HansSporer
Hans Sporer
Electronics & Costing Lab Director
FlorianWaimer
Florian Waimer
Senior Consultant
Sacha-AndréVoglgsang
Sacha-André Voglgsang
Senior Consultant

A2Mac1 - Automotive Benchmarking