Cost reduction projects themselves cost money. There could be design, prototyping and testing costs. Where hardware is changed there will also be compliance costs.
Before changing the product it’s worthwhile to quantify both the expected cost improvements and the associated costs and risks using value engineering. This ensures that the margin improvements bring a return on the project investment and goes on to generate profit.
Savings Delivered by borrowing an Engineer.
Very low volume products with no design issues may not benefit from cost reduction techniques. Conversely very high volume products can often generate significant profit improvements.
How we significantly reduced costs for a Smart Technology company.
Our other cost reduction focused services include:
Design review – See the whole picture
Extend product life – Get obsolescence protection
Power consumption reduction – Battery power letting you down?
7 ways to encourage product cost reduction
- Eliminate costly but redundant features
- Are your components weighing you down?
- Utilise new technology to your advantage
- Consider compliance early
- Is your product development process too lengthy?
- Be careful who you chose to partner with for manufacture
- Get expert advice throughout the NPD process
- Speak to us if you have questions
