Cost Reduction
Expert-driven VAVE programs to optimize Design, Cost, and Performance vectors.
Programs for Cost Reduction & Cost Avoidance
Using path-breaking Digital Twin data sets driven by our Patented Technology and integrating it with the VAVE frameworks. We at Caresoft can help you save substantial costs and help eliminate waste across Cost, Mass, and Assembly Time even before commencing any kind of manufacturing.
We work with several Automotive OEMs and their suppliers to identify implementable post facto engineering interventions that would produce tangible results for technology optimization and design fitness refinements in the existing vehicle programs.
We also actively engage in early-stage virtual cost reduction projects to establish the paradigm of Cost Avoidance.
Caresoft Cost Reduction Approach
Vision
Improve profitability in existing products
Leverage the Learnings/Best Practices for New Programs
Caresoft’s Approach
Current Products
Maximize the Savings
Cost Optimization
- Material Cost
- Manufacturing Cost
- Complexity Cost
New Products
DIRFT (Do it Right the First time)
Cost Optimization
- Virtual cost reduction (Industry Best practices)
- Technology optimization – Electrification, Autonomous, Integration of hardware and software, Mobility and Subscription services
Caresoft Enablers
Dedicated Team of Experts
Robust Processes, Methods and Tools
Involvement from Customers
Involvement of Leadership Team
Openness to Learn from the Competition
Outcome
Variable cost reduction/ Cost Avoidance Ideas
Early Engagement Guarantees Maximum Value
- The critical bench of Subject Matter Experts and VAVE engineers that support the execution of more than 20 global programs to date
- Manufacturing and Industrial engineers performing Engineering Hours Per Vehicle (EHPV) studies using standards such as MTM and more
- A proven methodology – “Cluster Approach” that promotes systems thinking
- Proprietary DeltaCosting™ methodology for quantifying Design Fitness
- Iceberg 3.0 Benchmarking Platform
- In-person and live-streaming programs and Idea presentations
Product Life Cycle
Product Conception
Product Development
Product Launch and Lifecycle support
Creating Cost Effective Designs
Conceptual Benchmarking and Cost Avoidance
Virtual Benchmarking and Cost Reduction
Physical Benchmarking and Cost Reduction
The Process
Idea Generation
- On Hands Parts Comparison
- SMEs Brainstorming
- Internal Idea Validation
Data Gathering
- Capture Idea Specific details
- Delta Cost Estimation
- DFA Time Savings estimation
Idea Validation
- Cross Functional Experts’ review
- Idea Rejection (35-40%)
- Review preparation
Idea Reviews
- Represent qualified Ideas to customer team
- Clarify and align technical assumptions “what needs to be true to make this work?”
Key deliverables of Physical Cost Reduction Programs.
Subject Matter Experts present all the cost reduction ideas using physical competitive parts relative to the assigned Pivot Vehicle. This involves a detailed teardown of all vehicles involved in the study and examining opportunities to optimize mass, material cost, and EPHV.
Pre-Teardown Analysis
- Side-by-side comparative analysis of vehicles – technical specifications/ configurations
- Eye-catching differences
- High-level comparison of product strategies
Teardown and Documentation
- Perform detailed teardown of all the vehicles in the scope
- Teardown data in Iceberg 3.0
Cost Reduction Ideas
- Comparative analysis and cost reduction ideas including material cost, mass reduction and labor savings
- Estimated savings/vehicles
- Full list of ideas and back up technical analysis/details
Technical Review Sessions
- Virtual review sessions will be conducted for each cluster with the customer through live stream, with the teardown part
- Sign-off
Key Deliverables Are Actionable Results
Virtual Cost Reduction Programs
The virtual cost reduction programs are focused on early-stage and mid-stage cost reduction interventions before significant Capex is committed for prototyping, tooling, and eventual full-scale manufacturing. This program uses customer provided CAD or Digital-Twin data as baseline for design to study and qualify design fitness, virtually.
Aligned to the vehicle program goals and CAD data’s maturity and evolution during the program timeline, we execute a minimum of three loops, before the final design release.
- Outside-In View from Caresoft SMEs for the core EV architecture strategies
- Cost reduction ideas for the key clusters (Core EV Architecture)
- Directional DeltaCosting, where required
- Detailed summary of all cost reduction opportunities
- Virtual technical review sessions
- Evaluate all clusters and the Overall Design fitness from an Outside-In view
- Focused analysis of long lead Tooling items
- Detailed summary of all cost reduction opportunities
- Directional DeltaCostingTM where required
- Virtual technical review sessions
- Design for Assembly (DFA) analysis
- Evaluate all clusters and the Overall design fitness from an Outside-In view
- Focus primarily on the design not reviewed before
- Directional DeltaCosting where required
- Detailed summary of all cost reduction opportunities
- Virtual technical review sessions
- Design for Assembly (DFA) analysis
Outcomes
We have completed several Cost Reduction programs across EVs, EV LCVs and traditional ICE LCVs and SUVs across the globe providing over 1000 ideas and saving Billions of Dollars and Euros in Capex and Opex.
Let's talk!
We are a technology-driven global engineering solutions company addressing challenges relative to benchmarking, product development, cost optimization, manufacturing, and aftermarket for major automotive OEMs, off-highway, commercial vehicle manufacturers, and their suppliers. Our award-winning technologies combined with highly evolved processes enable our customers to gain actionable insights that accelerate R&D programs, fuel growth decisions, cut costs, and improve efficiencies.