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Product Cost Reduction

Customers and competitors alike are constantly working to turn up the heat. In order to remain competitive you must continuously drive down cost while simultaneously improving product quality and performance. These challenges have become all the more significant with the increased use of outsourced manufacturing.

By working in close conjunction with the Engineering, Manufacturing, Quality and Marketing teams, the Cost Reduction team monitors overall product cost, then defines and implements ongoing cost reduction strategies.

Can you answer the following questions for your current products? What about the products currently in development?

  • What are your top three cost reduction opportunities? How much do they buy you?
  • How sensitive is product cost to manufacturing volume? What happens to your product costs if volumes increase 100%, 500% or 1000%? What if you decrease volume by 10%, 50% or even 75%?
  • You have identified multiple cost reduction opportunities but money and resources are tight. Which should you pursue?
  • The product moves through a complex supply chain with value-added steps being performed by multiple suppliers operating in multiple locations. What is the product's true cost? What should it be?

The Cost Reduction Workshop is an interactive session intended for intact team involvement. Attendees will apply the concepts presented to develop cost reduction recommendations for an actual client product. A one-day follow-up session is scheduled for 4-6 weeks after the workshop to assess team progress.

  • Design for cost
  • Activity based costing
  • Comparison versus "should cost" models
  • Recommendation & 1-day post-workshop follow-up review

Coaching and mentoring are also available to facilitate Cost Modeling & Sensitivity Analysis.

MASET, LLC    P. O. Box 11663    Chandler, AZ 85248
Phone: 602-721-3680     Fax 480-802-4710


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