Reduce costs with METUS Design-to-Cost PLUS

Reduce costs with METUS Design-to-Cost PLUS

Portfolio-oriented instead of product line-limited:
Design-to-Cost PLUS

Conventional cost optimization approaches focus on the individual product lines and thus leave the biggest lever, the commonalities in the product portfolio, largely unused. Portfolio-oriented cost optimization leverages this potential.

  • Cost optimization for all product lines in the context of the product portfolio
  • Rapid identification of overlaps in functions and technologies
  • Fast and reliable evaluation of long tails
  • Utilization of commonalities across product lines

 

Design-to-Cost Portfolio Optimization Cost Reduction
Function Structure

Design-to-Cost PLUS:
This is how it works

In cost reduction initiatives, product lines are usually optimized for themselves. Commonalities with other product lines often remain undiscovered and potentials for reuse are not exploited. The METUS approach Design-to-Cost-PLUS works portfolio-oriented instead of only focusing on one product line.

  • Mapping of all decision-relevant product views in a digital data model as a control center for optimization
  • Playing through different modularization perspectives: Market & customer, concepts & technologies, product, production & supply chain.
  • Establishment of the functional structure and associated generic product structure
  • Predefined views in the data model serve as decision basis for concepts & technologies, product variance and modularization & interfaces.
  • Concepts, technologies and product variance are defined in coordination with the requirement ranges / market potentials.
  • Product variants can then be generated flexibly across all product lines.

Success is measured via complexity metrics and success parameters.

FAQs

How the METUS approach differs from other cost-down programs?

There are two main differences:

  1. Common cost reduction programs generally focus on individual product lines and optimize them separately. Savings through commonalities across the product lines are not taken into account. The Design-to-Cost PLUS approach always focuses on the entire portfolio.
  2. By working on the basis of a product architecture, functional costs are always taken into account. Cost optimization therefore takes place in the context of the functions. Design thinking methods (such as the customer journey) or the Kano model can be used to measure the value of a function from the customer side and the costs of the components that fulfill the function from the product side.

 

What product-related savings can I expect?

An immediate effect can be measured in terms of manufacturing costs. On average, a reduction of 15-25% can be achieved here.

What cost effects can be expected for the project business?

In the project business, effects are mainly measured in four areas:

  • Application Engineering (10-25%)
  • Commissioning (10-15%)
  • R&D (10-20%)
  • Assembly hours (10-25%)
How can I assess what results to expect for my business?

If you are interested, we offer a Value Calculator Session in which we quantify the possible effects together with you and compare them with values from similar companies.

 

What does a typical project look like?

The typical project flow is divided into several steps:

  1. All decision-relevant product views in a digital data model as a control center for optimization.
  2. Analyze and compare four modularization perspectives and select the appropriate ones: Market & Customer, Concepts & Technologies, Product, Production & Supply Chain.
  3. Functional structure and the generic product structure as important structural elements in the data model to make sustainable decisions.
  4. Predefined views in the data model as decision basis for concepts & technologies, product variance and modularization & interfaces.
  5. Definition of concepts & technologies and product variance in coordination with requirement ranges / market potentials.
  6. Flexible generation of product variants across all product lines.

 Success is measured via complexity metrics and success parameters.

How can I optimize the cost position permanently?

For the sustainable optimization, from our point of view, the cost-side portfolio optimization with the METUS method and software makes sense; for this purpose, a method and knowledge transfer already takes place in the consulting project, which enables the customer to continue working independently after the project has been completed.

"Thanks to METUS methodology & software, we were able to embed the new platform deeply into the organization and benefit from cost savings of up to 32% in the long run."

Wolfgang Helm,
Director Business Unit Sensors, Pepperl+Fuchs GmbH

"ID-Consult's METUS methodology & software has been instrumental in helping us achieve our challenging performance, cost and sales launch goals. With the modular platform for our tumble dryers, we were able to save up to 30% of product and project costs."

Dr. Harald Jungerberg
Project Director e.r., BSH Hausgeräte GmbH

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