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Value Engineering and Cost Reduction Service

Get Tangible Results That Increase Your Profits In the Long Term. Not Just Today.

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How Our Customers Benefit
Value engineering + cost reduction techniques = tangible results

Lower Costs, Higher Margin

Value Engineering Services,
built around you

Product cost reduction for electronics increases your bottom line, whilst also allowing you to lower the price you sell at. Both will help keep you competitive.

Component prices are only part of the picture, however. We look at contributions to the overall cost of your product, including unnecessary features, manufacturing fees, and assembly times. There may be quality issues driving rework or rejection. We can also reduce expensive connectors and components.

Our endeavours can lead to considerable savings whilst still satisfying the needs of your customer.

Ask About Our Cost Cutting Techniques

We’ve been impressed with the high quality skill-set that has been added to the team. For us, the thorough understanding of the product requirements has been a key reason for success
Key Sources of Product Costs

Required Functionality

What does your product have to do? What do you want it to do? We review the functionalities of your product with you to align them with the needs and expectations of your consumers. We alter or eliminate features that are irrelevant to its function to reduce costs.

But we do so while making sure that the customer experience won’t be affected. We also see to it that the cost reduction in electronic designs still follows compliance standards.

Components

Can lower-cost, alternative devices be used? Ignys analyses your product’s components and checks if we can replace them with alternatives that won’t compromise the quality of the final product.

Our electronics product cost reduction services look into options like second source components, that give you leverage in negotiations.

Manufacturing Process and Assembly

How easy is it to make and assemble your products?  If you have steps that could introduce error or which are difficult to control repeatedly this can contribute to manufacturing costs through re-work.

Many outsourced production activities are charged per second or minute. Programming, calibration and setup can add significant costs if they take a long while.

A redesign to speed up or eliminate calibration or modifying setup and test programs for parallel activity can shave costs off production.

Quality of Engineering

Product quality of hardware, software or test contributes to product costs through rework, replacement or retest.

Using pre-tested subassemblies, identifying and addressing software bugs and fixing hardware issues, so that units are put together once and pass tests first time round will yield better cost savings.

Most manufactures assume a certain first-time pass rate for final product and will increase prices accordingly if the assumed rates are exceeded

Review your product costs instead

Stop. Take a Moment.

Cost reduction projects themselves aren’t a silver bullet. There could be design, prototyping and testing work – all of which come with a price. And where hardware is changed there will also be compliance costs.

So, before changing the product, it’s worthwhile to balance the expected cost improvements with the associated costs and risks using value engineering. This ensures that your margin improvements bring a return on investment and generate profit. For example, very low volume products with no design issues may not benefit from cost reduction techniques.

However, if your product is manufactured in high volume, you can often generate significant profit improvements.

Speak to an Engineer

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

Read the full blog

Value engineering that saves you money
Why is product cost reduction important?
01

Using emerging technology to make savings

Getting ideas to market quickly often relies on using pre-approved modules and reference designs to reduce the risk. Technology also moves on, delivering more functionality for less cost.
02

Add sustainability to your product development

To retain and grow market share after an initial launch, it is vital to follow up with a cost reduction programme to stay ahead of copycat competition and to keep your product lines refreshed. Reducing costs increases profits or allows you to reduce the price of your product, helping you stay ahead of the competition.
03

Where we come in

We are experts at identifying opportunities to reduce product costs. Options include: finding alternative parts, increasing integration and identifying alternate vendors to open up price negotiation opportunities. Together with simplifying production and assembly processes these elements combine to give significant savings on manufactured product costs and improved margins.
Success Stories

Case studies from Ignys Ltd

Contact Us
FPGA Design and EMC Compliance Support

Rapidly moving onto the next scale-up
Proof of Concept Technical Demonstrator for Energy Project

Hand-delivered a proof-of-concept demonstrator
Software Development Case Study

Extra features, problem solving and regular hours. "Stephen Lynch has been fantastic"
Environmental Simulation Test for Electronics Design

Test plan passing conformance metrics.
Product Development for Innovative Start-Up

Now at prototyping stage for a hot climate
Electronics Design For Availability

Successful sourcing of replacement parts with redesign
FPGA Design and EMC Compliance Support

Rapidly moving onto the next scale-up
Proof of Concept Technical Demonstrator for Energy Project

Hand-delivered a proof-of-concept demonstrator
Software Development Case Study

Extra features, problem solving and regular hours. "Stephen Lynch has been fantastic"
Environmental Simulation Test for Electronics Design

Test plan passing conformance metrics.
Product Development for Innovative Start-Up

Now at prototyping stage for a hot climate
Electronics Design For Availability

Successful sourcing of replacement parts with redesign
FPGA Design and EMC Compliance Support

Rapidly moving onto the next scale-up
Proof of Concept Technical Demonstrator for Energy Project

Hand-delivered a proof-of-concept demonstrator
Software Development Case Study

Extra features, problem solving and regular hours. "Stephen Lynch has been fantastic"
Environmental Simulation Test for Electronics Design

Test plan passing conformance metrics.
Product Development for Innovative Start-Up

Now at prototyping stage for a hot climate
Electronics Design For Availability

Successful sourcing of replacement parts with redesign
FPGA Design and EMC Compliance Support

Rapidly moving onto the next scale-up
Proof of Concept Technical Demonstrator for Energy Project

Hand-delivered a proof-of-concept demonstrator
Software Development Case Study

Extra features, problem solving and regular hours. "Stephen Lynch has been fantastic"
Environmental Simulation Test for Electronics Design

Test plan passing conformance metrics.
Product Development for Innovative Start-Up

Now at prototyping stage for a hot climate
Electronics Design For Availability

Successful sourcing of replacement parts with redesign
FPGA Design and EMC Compliance Support

Rapidly moving onto the next scale-up
Proof of Concept Technical Demonstrator for Energy Project

Hand-delivered a proof-of-concept demonstrator
Software Development Case Study

Extra features, problem solving and regular hours. "Stephen Lynch has been fantastic"
Environmental Simulation Test for Electronics Design

Test plan passing conformance metrics.
Product Development for Innovative Start-Up

Now at prototyping stage for a hot climate
Electronics Design For Availability

Successful sourcing of replacement parts with redesign
FPGA Design and EMC Compliance Support

Rapidly moving onto the next scale-up
Proof of Concept Technical Demonstrator for Energy Project

Hand-delivered a proof-of-concept demonstrator
Software Development Case Study

Extra features, problem solving and regular hours. "Stephen Lynch has been fantastic"
Environmental Simulation Test for Electronics Design

Test plan passing conformance metrics.
Product Development for Innovative Start-Up

Now at prototyping stage for a hot climate
Electronics Design For Availability

Successful sourcing of replacement parts with redesign

Steven Richardson is our Senior Electronics Engineer and he has been part of Ignys Ltd from almost the very start.

One of his favourite Ignys services is cost reduction. Taking a design and seeing how it can be improved while making savings on manufacturing costs is his expertise.

View the whole Ignys Team.

Drop us a line through the form below and we'll get back to you within 48 hours to let you know how we can help and answer all your questions.
Or call us: 0115 772 2825

Let's talk about your project