Cost improvement

Cost improvement

Design optimisation: cost improvement

Ricardo has a full understanding of the key cost drivers encompassed in a product’s design to enable price performance analysis to be conducted across multiple potential design solutions. We are equipped with seasoned industry technical strategists in manufacturing methodologies and cost calculation, with a clear understanding of manufacturing techniques.

Having directly led over 100 supplier workshops and participated in over 500 negotiations, Ricardo is among the most experienced management consulting firms in this field.  Our greatest differentiator is our unique access to hundreds of technical subject matter experts dispersed throughout the firm’s global offices that support Ricardo’s technical consulting capability.  Cumulatively, these experts have knowledge of state-of-the-art design philosophies, should-costs, and ideal supply base for major commodities such as metal structures, forgings, casting, and complex sub-assemblies such as wiring, engine and transmission parts, electronics, etc.

Our sector specialist teams have unique capabilities, including:

  • Process based cost estimation of complex systems to be manufactured in any location across the globe
  • Assessment of manufacturing risks associated with various options and development of risk / reward analysis
  • Advise on best approaches in design, based on cost estimation and identification of key drivers
  • Should-cost calculation and cost structure analysis to support comprehensive negotiations strategy

Ricardo provides a tailored solution for each of our clients’ needs, while incorporating tried-and-true approaches, such as:

  • Synthesize customer requirements, understanding key constraints, to identify viable and efficient solutions
  • Level-setting of product requirements, summary of current state, and manufacturing approach
  • Development of costing models utilising current market and manufacturing information
  • Introducing alternative solutions from other industries and products to drive robust results