Optimizing products for improved cost performance
Overview
With globalization and technological advancements, the current manufacturing landscape is becoming increasingly challenging. Manufacturers must implement measures to improve utilization of resources, short-term cost-cutting techniques, and long-term cost optimization strategies. The total product cost drives product pricing, which influences a company’s profit and revenue growth. This cost is a cumulative function shaped by the actions of engineering, manufacturing and sourcing.
Product cost optimization is a strategy to identify the impact of these elements on cost and implement sustainable measures to optimize it.
Imperative to the optimization activity is establishing a scientific baseline of cost for each component of a product. Using this cost baseline, we can identify the drivers that influence the product’s cost and utilize cross-functional expertise in design, manufacturing and supply chain to find and implement solutions for cost reduction.
Our approach utilizes tools, automation and in-house expertise across functions and domains to ensure rapid and accurate results for huge volumes. It can make a significant difference in establishing a cost baseline for a product at an early stage.
Infosys CoE for Product Cost Optimization has laid a roadmap to reach these cost reduction and control goals through our offerings:
Objectives
Reduction in the recurring production costs
Reduction in the product lifecycle costs
Empower value-stream to develop cost effective solutions & products
Higher fidelity Basis of Estimate (BoE) at an early maturity state & onwards
Strategic sourcing through supply chain analysis
Infosys Solutions
Cost Estimation
Empower the supply chain
Value Engineering
Improvements in design, MFG & composition
Product Benchmarking
Analyze features and functions
Design-to-Cost
Product development to target cost
Strategic Sourcing
Optimize supply chain
Cost Analytics
Drive meaningful insights
Key Levers
Engineering Levers
- Product / Cost Benchmarking
- Feature / Function Analysis
- Value Engineering / Design-to-Cost
- Standardization
Manufacturing Levers
- Alternate Manufacturing Processes
- Throughput Optimization
- Lean Manufacturing Practices
- Tooling Cost Optimization
Supply Chain Levers
- Spend Analysis
- Supplier Negotiations
- Global Sourcing Studies
- Make / Buy Analysis
Enabling Framework
Knowledge Models (Guidelines)
Labor, Equipment & Material Rates Repository
Established Implementation Framework
Multi-functional Core Team
Infrastructure
Cost Models
- Guidelines for every manufacturing process digitized into mathematical models
- Extensive and regularly updated proprietary repositories for labor, equipment, material rates across locations
- Pre-defined cost models customized to client requirements
- An experienced core team of experts having experience in design, manufacturing, and sourcing across domains
- Proven implementation framework for VAVE, benchmarking, and supply chain solutions
- In-house labs for mechanical and electronic teardown with specialized facilities for validation and verification, rapid prototyping
- Infosys’ costing solution, the Product Cost Optimization Platform, integrates all offerings to present a holistic solution
Product cost optimization is a strategy to identify the impact on cost and realize sustainable savings
talk to our expertsKey Differentiators
Multi-disciplinary cost optimization solution – We optimize products across design, manufacturing and supply chain elements for every component, be it mechanical, electrical, electronic or software. It is achieved through in-house labs for product teardown and rapid prototyping and alliances for prototyping, testing and certification.
Infosys costing tool with proprietary databases of material, labor and process rates – Extensive central repositories of rates across geographies feed into our costing solution to the Infosys Cost Optimization Platform, to enable accurate cost estimates at scale and speed.
Cross functional team with multi-domain experience and subject matter experts – Capitalize our technology expertise from across industries and domains to bring the best solutions for your product.
Challenges & Solutions
Resource Center
