Due to cutthroat competition, companies need to find ways to optimally adapt their products to market requirements in terms of price, quality and performance, placing them in a position to differentiate themselves through a better price-performance ratio. To achieve this, companies need to deeply understand all their products, processes and business model, so as to eliminate unnecessary costs and improve the value of their products or services to the customer. In this way, a competitive advantage can be generated.
Our Approach
Situation
In the interplay of competition and market requirements, functional rather than cost-oriented thinking is often used, which results in a lack of competitiveness in the price-performance ratio of the offered machines and plants. To still be able to offer a competitive price, poor margins are accepted, which further deteriorate due to deviations in the pre- and post-calculation of customer orders.
Target
A customer-oriented price-performance ratio must be defined concretely. Our consultants achieve this with a comprehensive analysis of market requirements and the effective reduction of the development and manufacturing costs.
Solution
For cost reduction through value analysis, we combine the internal experience of our clients with our industry expertise. Together we evaluate and prioritize the requirements, expectations, and wishes. We analyze the current situation and develop the basic mechatronic structure using a system image, system and basic structure, as well as the existing variants and options. Based on this basic structure, we identify initial savings opportunities, which we classify into short, medium, and long-term potential.
In a detailed cost overview, we map the costs of the adaptation design as well as the development, material, and manufacturing costs with reference to the basic mechatronic structure. This cost overview forms the basis of our comprehensive analysis of optimization and savings potential. With concrete recommendations for action, we define the cost-down target together with our clients.
Result
By developing and applying value-analysis methods and strategies, ensign advisory enables clients to achieve best price-performance ratios in their product portfolio as well as cost savings of more than 15%, which translate into higher profit margins. This places our clients in a position allowing them to create competitive advantages, satisfy customer requirements and achieve sustainable growth. Since we work hand in hand with our clients, the strategies and best practices are integrated into the business for a culture of continuous improvement. The savings from such strategies are so high that the consulting costs are rapidly amortized.
Our Core Competencies
Effective Target Costing
Where there is intense competition, the market sets the prices and companies cannot control them effectively. Companies do, however, have control over their own costs. We can help clients plan costs proactively and implement cost-saving strategies that will allow them to remain competitive while simultaneously increasing their profit margins.
Value Stream Analysis/Design
Together with our clients, we analyze the complete manufacturing processes to get a clear picture of the current state and identify value-adding activities and potentials. We help develop solutions to optimize processes along the entire supply chain and reduce product costs.
Target Cost-Oriented Design
After product manufacturing, the options to influence costs are rather limited and design changes can become very costly. We support our clients with appropriate management strategies, from the earliest stages and throughout the design process, which take cost into account as a key design parameter.
Target-oriented requirements management
Together with our clients, our consultants analyze the company's targets and framework conditions. This is done to ensure that all offers are in line with the clients' requirements as well as those of internal and external stakeholders.
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