To compete successfully in any market segment it is essential to gain detailed insight into the products of other market participants including the features and production costs of the products. We can provide comprehensive benchmarking and best practice know-how which will enable you to improve your position in the market.
Obtain benchmark products
Agree benchmark assumptions
Collate and calculate the necessary data
Carry out teardown and costing
Presentation of benchmark results
Generate ideas at sub-assembly level
(cost-down workshop)
Cost ideas
Prioritise ideas and set objectives
Implementation
Cost benchmarking is a strategic instrument which can be used to analyse the costs of a product and compare them to those of a competitor or to industry standards. It includes the analysis of various cost components, such as production costs or material costs, with the aim of identifying areas in which the business is investing too much or too little compared to other businesses. The aim of benchmarking here is to see how the business compares to competitors both in terms of quality and price, and to identify specific improvements. The benchmarking analysis also indicates in which areas or function groups a business’s own product is better or more cost-effective than competitor products. You then have the opportunity to create a “best of best” product.
With the costs for the comparison products now transparent, it is possible to ascertain cost advantages and cost potential for the various function groups of the reference product. The solution alternatives range from commercial optimisation (for example, relocating to an alternative production site) to specific changes in processes (for example, using alternative materials or production technologies), through to ideas for concepts for specific products (for example, common parts strategy/modular strategy).
Our cost benchmarking process is divided into the following three phases: planning, analysis and implementation.
The planning phase focuses on developing a plan for the benchmarking. What are the specific goals? Why should benchmarking be carried out? The goals must be measurable and it is this that forms the basis of success. Specifically, the following questions must be addressed:
In this phase an analysis of the benchmark products is carried out for all the given assumptions. Your product and the comparison products are dismantled, documented and cost analysed – this enables us to identify all strengths and weaknesses and allows us to compare them to your product. In essence the following questions are addressed:
The implementation phase involves a cost-down workshop in which the results of our benchmarking analysis are discussed with you in detail. This step is crucial in translating the results of the process into specific improvements which serve to enhance the competitiveness of the product. It is important to carry out this step with care and attention in order to achieve the desired results. It allows various cost scenarios to be generated which can be used to prioritise those ideas which are to be implemented and what measures need to be undertaken for the implementation.
We will work out answers to the following questions with you in this phase:
Typical savings include optimising the component geometry or the use of alternative materials or production processes. For example, thinner walls in manufacturing plastic parts means less material and a shorter cycle time, saving both material and manufacturing costs. And similarly, ideas can be generated at component level to simplify the component structure (common parts), providing savings in assembly work and/or development work, while at the same time bundling volumes in procurement.
As an example, the following product factors can be achieved through benchmarking costing optimisation:
We can draw on experience gained in numerous benchmarking projects in a diverse range of industry sectors. This enables us not only to contribute our specialist know-how to the project in hand but also to take cross-industry solutions into account in the benchmarking analyses.
In order to guarantee an optimal project environment, we have set up our own benchmarking centre at our headquarters with space to allow several products (for example, cars) to be dismantled and analysed side-by-side. The building also has a number of rooms for presentations and seminars allowing us to conduct cost-down workshops with up to 50 participants.
Our benchmarking experts are available to offer advice and assistance in advance and are happy to discuss your requirements free of obligation. We will then discuss a suitable approach with you depending on the specifics of the project and industry. To contact us, simply call us direct or fill in the contact form.
