Design-to-Cost and Design-to-Value

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

Designing to cost always achieves the targets of 15 to 30% savings and spectacular Returns on Investment (ROI), often in only a few months.   

Context and challenges

When costs have been successfully optimized, design-to-cost provides a solution for managers who need to think “outside the box” in order to go one step further. It is a pragmatic approach that mobilizes the company's ecosystem.

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Broad collaboration across the value chain, from suppliers to clients and users, relies on teamwork, where all the company's functions interact with one another in a coordinated manner to achieve the objectives set by the executive management: cost reduction, cycle reduction, new offers, etc.

The implementation of such projects therefore requires a proven method and a set of tools. Thanks to our expertise in coordinating multi-functional groups, and our teams’ (who are primarily composed of engineers) affinity for technical matters, we are able to understand the technical challenges that our clients face.

How can Argon Consulting help you?

  • Defining the design-to-cost initiative by analyzing product and service portfolios, cost structures, and organizational maturity, in order to determine any projects with “out-of-the-ordinary” opportunities
  • Implementing multifunctional teams focused on seeking out opportunities, both internally and with external partners, clients and suppliers. We apply value analysis and functional analysis for the products and services concerned as well as 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’s life cycle
  • Ensuring that teams buy into targets that are out of the ordinary as well as into the decision to take up the opportunities identified by work groups, by assessing their technical and financial risk
  • Coaching operational teams in order to succeed in the implementation of opportunities and facilitating the initiative’s adoption through the transfer of skills.

Case Studies

Deployment of a standard design-to-cost approach in an international group
Comprehensive restructuring of R&D processes – skills transfer
Management and acceleration of an innovation program