A product’s maximum value is achieved when it reliably fulfills its function at the lowest possible cost. To remain competitive in today’s intense market competition, companies must reduce costs to the greatest possible extent; however, this should never be done at the expense of product quality or performance. Value engineering ensures that customer benefits are increased, yet without reducing functionality for the customer. This is the only way companies can achieve technology leadership in the industry.

Our Approach

Situation

Situation

In an intensive, global competitive environment, demands regarding the flexibility, variety, and complexity of machines and systems are increasing. The relationship between customer benefit and the price offered is often disregarded, resulting in companies facing increasing price and cost pressure.

On the other hand, the actual customer benefit is often given too little consideration in the development of machines and systems or is over-fulfilled by the engineers. This drives up product costs, extends time-to-market, and increases development costs. Customers are usually not offered any real additional benefits, so they are not willing to pay the additional costs. Margin losses or unsaleable products with high development costs are the result.

Target

Target

By consistently integrating the clients’ needs and all parties involved in the value chain, a market-oriented price-performance ratio and a shorter time-to-market must be achieved. This ensures lower development costs and short-term project ROIs.

Solution

Solution

As part of profitability optimization, and together with our clients, our consultants use value-analytical methods to evaluate and prioritize requirements, expectations and wishes .

We create a quantifiable value proposition map in line with the business strategy, using benefit-centric design thinking methods. This compares customer needs with the potential functionalities of the product to be developed. We then quantify the customer benefit of the functionalities and define the resulting target costs.

Based on the analyses and target costing, we create well-founded and structured specifications for the new development. They are the basis for the development of the specified machines and plants under constant product cost evaluation. The fundamental building blocks of our approach to cost-oriented product development are the continuous involvement of all areas along the value chain and implementation-oriented project management.

Result

Result

ensign advisory uses value engineering methods to help clients achieve a 10% to 15% shorter time-to-market. Clients can also typically achieve 10 to 15% lower product manufacturing costs compared to the predecessor product due to a new product value chain trimmed for efficiency and 10% lower development and order processing costs. With ensign advisory as a partner, competitively positioned products, with high customer value and margins above 30%, can be achieved.

Our Core Competencies

Design Thinking

User needs should be a high priority in the development of new products. Using methods such as Design Thinking, we help our clients create lasting user value. With this approach, which is an iterative process, our clients can develop their ideas so that they can continuously respond to the needs of the market.

Value Proposition Mapping

We help our clients understand market needs and develop the products and services that satisfy them. Thanks to strategies such as value proposition mapping, they can create competitive advantages that set them apart from the competition, establish and develop loyalty and customer retention, thereby increasing profits.

Leveraging Value Stream Design

Together with our clients, we analyze the complete manufacturing processes to clearly present the current state and identify value-adding activities and potentials. We support the development of solutions that are targeted at optimizing processes along the entire supply chain and reducing product costs.

Targeted Target Costing

If there is intense competition, prices are set by the market and companies cannot effectively control them. Despite this, companies have control over their own costs. We can help to proactively plan costs and implement cost-saving strategies that will allow clients to remain competitive while increasing their profit margins.

Target Cost-Oriented Design

After product manufacturing, the possibilities to influence costs are rather limited and design changes can become very costly. We support our clients with appropriate management strategies that consider cost as a key design parameter from the earliest stages and throughout the design process.

Agile Development Methods

With our expertise, we also support clients in the implementation of agile development methods to increase the success rate of projects. By introducing iterative process flows, companies can react rapidly to changes demanded by the market during the development cycle, improve quality and focus on value creation.

Goal-Oriented Project Management

Our consultants support clients in project management for the implementation of the identified strategies and methods to achieve a market-oriented price-performance ratio and a shorter time-to-market.

Target-oriented requirements management

Together with our clients, our consultants analyze the company's goals and framework conditions to ensure that all offers are in line with the requirements of customers as well as internal and external stakeholders.

Development of market-oriented product and requirement specifications

We use our extensive industry experience to help clients understand market requirements and develop specifications for their product and service portfolio that address them.

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