FEV Smart Cost
Intensifying competition in global sales markets, consolidation of suppliers, rising cost sensitivity of clients and the need for technical innovations in shortening time cycles, is increasing the cost pressure for many companies. A structured and comprehensive cost & value engineering approach is key to meet customer requests at minimum costs. The unique FEV consulting approach “Smart Cost Reduction” offers eight professional service modules to achieve best cost solutions for technical products.
Using an interdisciplinary approach, FEV engineering, production, cost calculation and procurement experts realize significant cost savings. FEV supports the entire product life cycle with focus on cost & value optimization: From target cost determination, cost and specification analysis, benchmarking and bottom-up should cost calculation to idea workshops, global sourcing and supplier development as well as redesign activities and optimization of the organization and processes.
#1 Target Costing
Target costs are determined using a practical and proven process which considers customer requests and bottom-up calculation results and will provide the foundation for a life cycle cost management.
#2 Data Analysis &
Detailed analysis of the existing cost structure and an assessment of the current specifications to highlight cost drivers, potential over-engineering and quick win savings.
The FEV benchmarking analyzes competitor technology and cost structures in detail and provides the basis for the identification of best practice solutions and cost saving levers.
#4 Cost Calculation
Our detailed process and manufacturing know-how enables us to conduct a transparent bottom-up should-cost analysis as a basis for cost improvement and supplier negotiation.
#5 Cost Reduction
Interdisciplinary cost reduction workshops with FEV experts generate numerous innovative cost reduction ideas using a value engineering approach in order to meet client requests at minimum cost.
#6 Sourcing &
Worldwide FEV sourcing experts run a global sourcing process in order to identify and assess potential suppliers. A structured supplier management supports the negotiation with and development of current suppliers.
#7 Redesign &
More than 3.500 FEV engineers with a wide range of individual technology specialization areas will turn cost reduction ideas into implementable solutions.
#8 Organization &
The implementation of a best practice cost engineering organization and the training of client’s staff ensures the sustainability of realized savings.
BENEFITS FOR YOUR BUSINESS
- Realization of significant cost savings
- Practice-oriented determination of target costs and budget allocation
- Full transparency about cost drivers and deep insights into competitor costs
- Robust should-cost calculation as a basis for supplier negotiation
- Global sourcing in order to identify, assess and develop qualified suppliers
- Turning ideas into solutions by product redesign and production engineering
- Best practice organization and knowhow transfer to qualify client’s staff
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