With globalization and technological advancements, the current manufacturing landscape is becoming increasingly challenging. Manufacturers must implement measures to improve utilization of resources, short-term cost-cutting techniques, and long-term cost optimization strategies. The total product cost drives product pricing, which influences a company’s profit and revenue growth. This cost is a cumulative function shaped by the actions of engineering, manufacturing and sourcing.
Product cost optimization is a strategy to identify the impact of these elements on cost and implement sustainable measures to optimize it.
Imperative to the optimization activity is establishing a scientific baseline of cost for each component of a product. Using this cost baseline, we can identify the drivers that influence the product’s cost and utilize cross-functional expertise in design, manufacturing and supply chain to find and implement solutions for cost reduction.
Our approach utilizes tools, automation and in-house expertise across functions and domains to ensure rapid and accurate results for huge volumes. It can make a significant difference in establishing a cost baseline for a product at an early stage.
Infosys CoE for Product Cost Optimization has laid a roadmap to reach these cost reduction and control goals through our offerings:
Empower the supply chain
Improvements in design, MFG & composition
Analyze features and functions
Product development to target cost
Optimize supply chain
Drive meaningful insights
Knowledge Models (Guidelines)
Labor, Equipment & Material Rates Repository
Established Implementation Framework
Multi-functional Core Team
Multi-disciplinary cost optimization solution – We optimize products across design, manufacturing and supply chain elements for every component, be it mechanical, electrical, electronic or software. It is achieved through in-house labs for product teardown and rapid prototyping and alliances for prototyping, testing and certification.
Infosys costing tool with proprietary databases of material, labor and process rates – Extensive central repositories of rates across geographies feed into our costing solution to the Infosys Cost Optimization Platform, to enable accurate cost estimates at scale and speed.
Cross functional team with multi-domain experience and subject matter experts – Capitalize our technology expertise from across industries and domains to bring the best solutions for your product.
Infosys can help you with cost estimation through our Cost Optimization Platform. This first step in cost optimization is to understand the costs and cost drivers of a product as it opens many downstream optimization avenues.
Introducing a product into a new competitive market where similar but cheaper products are available can be quite challenging. Our service can help you bring down the cost of the product to be competitive through:
Our value engineering service provides a holistic method of optimizing the product for cost, value, function and feature. This service relies on our cross functional team of subject matter experts from all stages of the value chain, bringing in extensive industrial and domain expertise, in-house infrastructure including labs for teardown, testing, prototyping and a proven approach.