Case study — Value Study
23% Lower Product Costs
While retaining and growing what customers value most
- Client
- Industrial equipment OEM
- Size
- 90 employees
- Project length
- 4 weeks
Before
Baseline cost
Original product cost, before the value study
After
23% lower cost
Savings while keeping what customers value most
- Deeper understanding of what customers value and how they compete in the market
- Stronger team capability to keep improving product value
What the client wanted
Understand where costs sit in each function, find ways to save money and increase customer value.
The challenge
Traditional cost saving efforts were no longer driving results the way they did at first. The company knew it needed to understand the function value of its product and look for engineering approaches to increase value and reduce cost.
The approach
- 01Completed a value study (VA/VE).
- 02Summarized each function and its associated cost.
- 03Collaborated across functions to generate ideas.
- 04Analyzed the ideas.
- 05Implemented the ideas.
The point of impact
Understanding the cost of each function, and challenging the team through a structured process that moves from divergent to convergent thinking to solve problems.
“The structured process unlocked a way of thinking I never thought was possible. The results were world-class.”
What made it work
The only thing stopping you from unlocking more value is closed thinking. Breaking your product down into functions and following a structured process unlocks it.
Next step
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