Challenge

Under cost pressure from competitors, our client wanted to understand if the competitor machines were cheaper to manufacture and, if so, why?

Approach

• We undertook a ‘tear down analysis’ of the competitor product and compared it to our clients and showed that the competitor’s machines were actually more expensive
• We identified a number of design changes to reduce the cost of our client’s product

Benefits

• We identified manufacturing cost savings in our client’s current product of 35-40%
• We highlighted that design of a new machine could save as much as 70% on the current machines
• Our client was better informed of its competitors’ cost base and selling margins