Product Cost Reduction

Reduce the cost of the product system, not just the quoted unit price.

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Your starting point

For teams whose existing product costs too much to manufacture. Review design, materials, components, processes, assembly and supply-chain choices together.

Key decision: is the saving worth the change?

A proposed saving remains an estimate until the revised product and production route are validated. No percentage reduction is promised before the product and baseline are reviewed.

Where can cost originate?

Review the product
and the way it is made.

Design & parts

Function, geometry, part count and tolerance demands.

Materials & finish

Required properties, specification and processing.

Manufacturing

Process choice, tooling and production volume.

Assembly & quality

Access, sequence, testing, rework and yield loss.

Supply chain

Order assumptions, components and logistics.

Recurring cost opportunityOne-time change costPerformance & quality validationImplementation decision

A comparison framework, not an estimate of savings for your product.

01

Establish a usable baseline

Separate material, bought-in parts, processing, tooling allocation, assembly, test, yield loss and logistics where information is available. Record the quantity and assumptions behind every comparison.

02

Find the mechanisms behind cost

Look for tolerance requirements that exceed functional need, unnecessary parts, difficult assembly, over-specified materials or finishes, and unsuitable production routes. Review supply-chain choices alongside engineering rather than treating price negotiation as the whole solution.

03

Compare the full change

Estimate recurring savings, one-time engineering and tooling costs, minimum order quantities, lead-time implications and verification effort. Check whether a nominal saving transfers cost or risk into inspection, scrap, inventory or service.

04

Validate and implement selectively

Prioritize opportunities by impact, confidence and implementation burden. Use samples or trials to verify retained performance and quality. Release approved changes through the BOM, drawings and supplier instructions, then compare actual production cost with the baseline.

What to bring

  • Current product, BOM, drawings and annual or batch volume
  • Available cost breakdown and quality-loss information
  • Performance requirements and limits on acceptable changes

Outputs to define together

  • Cost baseline with assumptions and data gaps
  • Opportunity register with engineering rationale
  • Options comparison including one-time change costs
  • Validation and phased implementation plan
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What do you have? What needs to happen next?

Tell us about your product, the work already done and the problem you want to solve. You do not need to know which service to ask for.

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