Design to Cost

Optimize design and service offering to reduce total ownership costs of products and services

Design-to-Cost always delivers the promised results: at least 15 - 30% savings guaranteed within the scope of action, with unparalleled Return on Investment (ROI), and very often within just a few months.

Context and challenges

When costs have been successfully optimized, Design-to-Cost provides a solution for senior management in need of disruptive innovation to go one step further. This is a pragmatic approach, which mobilizes the company's ecosystem.

Extended collaboration across the value chain, from suppliers to customers and users, is based on a team effort, in which all the company's functions work together in coordination to achieve the targets set by the executive management, e.g. cost cutting, cycle reduction, new offers, etc.

The implementation of such projects requires a proven method and tools. Argon’s expertise in coordinating multi-functional groups, and the affinity of our teams (who are primarily composed of engineers) for technical matters, help us understand the technical challenges faced by our clients.

How can Argon Consulting help you?

Argon Consulting supports its clients by:

  • Defining the Design-to-Cost initiative by analyzing the service and product/service portfolios, cost structures, and maturity of organizations in order to determine which projects have disruptive innovation potential
  • Implementing multifunctional work groups focused on seeking out opportunities both internally and with external partners, customers and suppliers. We apply value analysis and functional analysis for products and services concerned. We identify the cost drivers and optimize the development logic, industrial processes, the Supply Chain and sourcing strategies as part of a total cost optimization logic over the product life cycle
  • Ensuring teams adopt disruptive innovation targets, and deciding to implement opportunities identified by work groups through the assessment of technical-financial risk-taking
  • Coaching operational teams to succeed in realizing opportunities and facilitating adoption of the initiative through skills transfer

Case Studies

Operational due diligence in the acquisition of a specialized retailer by an investment fund
Yes, it is still possible to save 30% on indirect procurement!
Defining a makeorbuy and sourcing strategy for all clinical development processes
Various levers can still be activated to optimize costs and control the margin
Finding procurement synergies in a decentralized group
Organizing procurement and managing new products introduction