Redesign to Cost

Redesign products and services to deliver ‘best in class’ value propositions

Overview

K Consulting have adapted one of the most effective techniques known to design engineers to maintain or enhance value whilst reducing costs - a critical process for maintaining efficiency and competitive advantage. We work with key stakeholders involved in all aspects of the quality and cost chain: from designers, production, procurement and finance personnel to sales and marketing. By analysing the existing design of products and services, the profit risks and opportunities, we identify cost areas that can be reduced without impact on value.

Equipped with this information we can pinpoint areas for potential cost reduction to maintain or increase competitive advantage. This approach, involving input from all major areas of the organisation, will typically result in product or service redesign or the definition of a new sourcing strategy. It can also help establish new opportunites for products, services or processes that may not have been previously identified or have not been possible.

Key Steps

Define scope with initial diagnostic
Review design, cost and value chains through a series of workshops and interviews
Create matrix of cost vs. value for each element of the product/service being delivered

Establish and rank potential areas of over-cost and business constraints through a second round of workshops
Communicate internally with operations and externally with suppliers to validate areas for cost reduction
Rank solution areas identified

Agree phasing
Implement changes with the design, operations and supply chain teams
Award contracts and communicate internally and externally

Benefits

Strategic Solutions - sustainable, effective solutions that deliver tangible benefits
Savings - elimination of waste in the cost chain
Inclusive Involvement - of all key personnel ensuring optimum solution without compromise
Return on Investment - aim to deliver ROI on project in 1 year or less
Competitive Advantage - maintain or enhance market position
New Opportunity Identification - for new product or service propositions

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