Food4Thoughts
Design-to-Cost and Value Analysis / Value Engineering (VA / VE) are established methods to support cost optimization measures. But what happens when the performance of these methods weakens and the resources used do not deliver the desired payback? What if cost targets are not met? Weaknesses must be identified and optimized in order to continue to use these methods in a value-adding manner.
Technical savings are crucial to hitting business targets
Industrial companies have been focusing on optimizing their cost structures for years – especially product costs to refinance necessary investments in technology and infrastructure caused by market disruptions. In addition to purely commercial approaches, Design-to-Cost or VA / VE approaches have experienced a renaissance in generating technical savings in recent years.
Design-to-Cost / VA / VE teams are failing to reach their targets
The executed outside-in Performance Benchmarks show areas for improvement in all structural pillars w/ major weaknesses in HR
What needs to be done to increase Design-to-Cost / VA / VE performance?
Companies need to understand:
- Which weaknesses lead to low savings performance
- Which levers to use to improve implementation and realization of savings
- What the Best Practice Organizational setup is and how future shortfalls can be prevented
Solution concepts are company-specific
The performance problem in Design-to-Cost / VA / VE is often multi-layered. Identifying the right levers for anchoring VA / VE in the company and optimizing savings performance is success-critical and can only be answered after a detailed analysis.
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Working with the most qualified Tsetinis Consultants is key to your success.
Speak with an expert in your industry who can help you move your company toward your specific goals. We implement our expertise in a very specific and targeted way and tailor the choice of methods to your individual requirements. In this way, we can ensure your long-term success.
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Martin Kruschel
Partner
Materials Management
Product Profitability
R&D Excellence

Sönke Johannsen
Senior Principal
Product Profitability
R&D Excellence
Materials Management