Design Cost Improvement

Design Cost Improvement

With an expanding global marketplace and ever-increasing competition, successful businesses are under pressure to maintain tight control over costs and find innovative methods for cost reduction. When facing extreme market pressures, companies often tend to cut costs in an unstructured manner, thereby impacting long-term growth. Ricardo Strategic Consulting (RSC) believes that cost optimization, when enacted with a long-term strategic focus, can lead to significant growth in bottom-line margins while growing the customer base and increasing customer satisfaction.

RSC has a full understanding of the key cost drivers encompassed in a product’s design to enable a price performance analysis to be conducted across multiple potential design solutions. We are equipped with industry leading technical strategists in manufacturing methodologies and cost calculations, with a clear understanding of manufacturing techniques. Additionally, our global and diverse experience brings industry insight to identify core competencies and strategic areas of the product design. Through this lens, we can approach cost improvement in a manner that aligns with the corporate direction.

Having directly led over 100 supplier workshops and having participated in over 500 negotiations, RSC is among the most experienced management consulting firms in this field. Our greatest differentiator, however, 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 elements for major commodities such as metal structures, forgings, and castings and complex sub-assemblies such as wiring, engine and transmission parts, and electronics.

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
  • Advice on best approaches in design, based on cost estimation and identification of key cost drivers
  • Should-cost calculation and cost structure analysis to support comprehensive negotiation strategies

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

  • Synthesizing customer requirements and understanding key constraints to identify viable and efficient solutions

  • Level-setting of product requirements and manufacturing approach

  • Development of costing models utilizing current market and manufacturing information

  • Introducing alternative solutions from other industries and products to drive robust results