SERVICE POWERED BY SIEMENS ADVANTA

Cost & Value Engineering

Providing detailed analysis to identify the optimal approach to source, manufacture and design-in innovation and sustainability while reducing cost.

Cost & value engineering provides another lens, beyond traditional procurement levers, through which to tackle cost challenges. Using a bottom-up approach, we support the process of aligning costs to strategy as well as optimizing the costs of current products and helping to shape future products – ensuring the benefits are maximized across the entire product lifecycle.

Value Analysis Value Engineering (VAVE) – assigns a cost to the value or function of a product. By optimizing the relationship between the two, we ensure that products are not over-engineered or under-designed but instead are engineered for the task while keeping costs down.
Should cost modelling – we take a bottom-up approach to produce accurate granular level cost calculation for a product or service. These cost models help future procurement cost negotiations, allowing our clients to conduct fact-based negotiations with suppliers.
Make versus buy – we help clients understand the true cost of making something in-house versus buying from a supplier. This enables them to make data-backed decisions that support better profitability, stronger business resilience and greater competitive advantage.
Design to cost – we support clients to design products with the total cost of design and manufacture in mind. This gives our clients the understanding they need to design a product that is not only fit for purpose but one that can be produced at volume for a profit.
Lifecycle costing – accurately profiling the costs of a product over its entire life, from its inception to its decline and end-of-life costs, to understand the total costs involved and successfully forecast and plan for the future.
Carbon footprint calculation – we take an in-depth look at the carbon profile of products and their parts to identify those with the highest emissions, before modelling different scenarios and recommending specific actions to help reduce the overall emissions.
Battery manufacturing assessment – our battery manufacturing assessment helps clients get more transparency around the commercial impact and investment decisions they need to make to ramp up production in battery manufacturing and provides key insights for manufacturing scalability – shaping the art of the possible for tomorrow’s gigafactories.

What we can do for you

Engineering the product to the right level – we advise on what our clients’ target cost should be for a particular product, component, or the business as a whole. This ensures that a product or component is not over-engineered, therefore reducing spend.
Enhanced supply chain relationships – we help clients forge better relationships with their suppliers by getting all parties to deal in facts, ensuring transparency and therefore helping reduce cost by getting the right quality of the right part from the right supplier.

Lower cost and emissions through design - having an accurate data-led cost or carbon calculation allows our clients to make design decisions based on a product’s overall lifetime costs or carbon profile before it enters production.

Benefits

Our industry leaders

Please reach out to our experts for more information.

Dominic Tribe

Global Consulting Partner and Cost Transformation

Julie Neal

Global Consulting Expert and Cost Transformation

Paul Adams

Global Consulting Expert and Cost Transformation

Alan March

Global Consulting Expert and Cost & Value Engineering