Cost Reduction

Cost Reduction

Cost reduction is primarily about extending the life of a product by reducing cost to facilitate the required profit margins.

There are three main factors which can lead to the need for cost reduction;

  1. In the rush to get new products to market, parts from older projects are often re-used to reduce TTM (Time to market).
  2. Advances in materials, processed and electronics can offer new solutions, unavailable during the initial design process.
  3. Changes in sales volumes over time can mean that the optimum design solution is no longer being utilised.

We look at all thee factors when performing a cost analysis and present our clients with a business proposal that will present the cost saving opportunities compared with the cost of implementation.

Contact us and find out how we can perform a cost reduction analysis on your existing products.

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