Do you have a good product that is too expensive to manufacture? Are the new development costs getting out of hand, so that there is a risk of loss with the imminent product launch on the market? Or is a trusted product losing in competition due to lack of optimisation? There are many situations where it is efficient to invest in testing the value, function and expenses of one’s own product range with the Cost Value Engineering (CVE). In addition, this process allows new products to align with customer expectations and market conditions. We at h&z provide professional support and offer a variety of technical and commercial levers that improve products, reduce costs and successfully increase your market competitiveness in the long run.
In more than a hundred CVE projects, we already have been able to identify potential savings of up to 30 percent of manufacturing costs. In product optimisation, we accompany companies through all implementation phases. Customers benefit not only from our wide range of experience and methodological know-how’s, but also from our CVE toolbox and our network of experts across various industries and product groups. In order to achieve the highest optimisation effect, we provide various functional areas for your company and accompany you in your individual transformation towards a cost-optimised organisation – with brain, heart and hand.
cost, value and functional optimisation of products
The perfect product sells itself at a price with an attractive margin. Sounds simple, but how do you know which product is actually needed on the market and how high the cost of it should be? These are the precise questions that determine the long lasting success of a company and can be answered with our cost-value engineering project. With ourvarious methods and established tools, we help ourclients through all stepsofoptimal cost structures. Weappropriate the market orientation and make your company positively stand out inhigh competitiveness. Our experts‘ rangeof experienceand expertise coversthe technical analysis of product tear-down to its positioning in the market, as well as the transformation of the entire organisation.
Should Costing & Benchmarking
Prices ofraw materials, wages or logistic chains varyalmostdaily, which means that the cost structures of your and your suppliers developmentcanquickly become intransparent. However,cost transparency is absolutelynecessary if you want to survive in competition. Which is why we implement ourshould-costingmethodin consultation: especially in the areas of development/engineering and procurement. We, for exampleprovide a analysationof bottom-up calculationsof products, components and systems, through which prices and costs aretransparently compared with companies goaltarget costs.
Benchmarking provides in addition a systematic comparison between one’s own services and products, and those of the biggest competitors. In our CVE workshop, we are easily able to dissect products of a customer, supplier or competitor. Our intelligent methods and tools, can comprehensively identify strengthsand weaknesses, cost drivers and most efficient optimisation opportunities. Our experts proven innumerous of ourtear-down studies, the improvement ofproductsand entire systemsthrough optimisation. Our analysis providesan increase of value for the company and sustainablecostsreduction.
We combine our many years of cross-industry experience with various digital tools to, together with our clients achieve the most optimised and accurate CVE results. We use:
- Product Cost Calculator (pcc): web-based cost calculation tool for modelling the actual/target costs of products.
- Measure Tracker: Project management tool for digital collection and tracking the optimisation measures with real-time evaluation
MLPP: Tool for establishing linear correlations between costs and other performance parameters and identification of outliers
Withthese tools, our experts can transparently identify price outliers, point outpotentials and determineefficient costs for new developments – this sets acrucialbasethat provides clarity in supplier discussions,and enables asuccessfuladjustmentfor new product ranges.
Cost Value Engineering is a transformation and we support companies by setting up their own CVE department. This department is crucial for sustainable product optimisation as without it, the structures of cost evaluation cannot be redesigned. It serves as an interface for development, procurement and production. We at h&z bring the individual functional areas together and help you with a successful CVEimplementation. We rely on a comprehensive analysis and optimisation of organisation – with the Target Operating Model, or TOM for short. To evaluate the maturity level of a CVE organisation, we offer a comprehensive assessment. Based on this, in combination with benchmarking, we are able to identify weak points and optimise measures derived – often the basis for developing a future TOM. In subsequent projects, we help companies to understand, evaluate and re-establish CVE-relevant processes.
training & coaching
In addition of receivingoptimalresults fromthisorganisation, there is also a learning effect for your employees.Because we integrate an approach of consulting and training in every project. In the h&z Academy, we combine our in-depth consulting knowledge with a high level of competence to train your staff to become your organisation’s own CVE experts. Through various training programsor individualised coaching units, participants receive practical training in CVE-relevant topics so that they can later tackle them independently in their daily work. Our workshops can take place on-site,bythe customer, at our premises or also digitally. They help companies to anchor technical know-howsand bettercost awareness throughout the organisation.