Are you looking for ways to sustainably reduce engineering cost? Are your engineering cost increasing due to too many variants, rework and inefficient workflows? Do you have specific targets to reduce your cost? How to improve engineering processes? Looking for ideas to use Lean Development to make your engineering processes more efficient? Tangible improvements with measurable results need clear concepts and excellent change management. Today engineering management must have a clear concept how to assess cost and productivity and how to best implement objective-driven improvements.
Vector Consulting Services supports companies in improving their efficiency and in reducing engineering cost:
Many clients are working with Vector Consulting Services to identify efficiency potentials and to sustainably improve productivity. We deliver measurable results instead of mere theoretic analyses.
Initial situation: An automotive supplier faced the clear need to reduce engineering cost in order to remain competitive against global competition. It became immediately obvious that he would not succeed with implementing the necessary changes on his own. The risk was too high that targets would only partially be achieved and that employees would try to stick to existing structures.
Solution: With support of VCS the efficiency program got a concrete focus and clear – organization-wide – objectives. First the cost drivers had to be measured and evaluated. This was not trivial as the available data from projects did not provide sufficient insight into the cost of specific process steps, cost of non-quality, late changes and rework. There were many efficiency levers, such as variant management or the cost of non-quality, but it was also obvious that by covering only the engineering side they would not materialize. We therefore integrated product management, product marketing and operations into the efficiency project. On that basis the necessary improvements in requirements engineering and change management could be systematically implemented. Afterwards the results had to be safe-guarded to ensure sustainability and to avoid that savings would get lost in complexity increases.
Results: The systematic requirements and change management achieved a cost reduction in product development of 12%.
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