This PPT slide, part of the 24-slide Cost Reduction Opportunities (across Value Chain) PowerPoint presentation, outlines strategies for product re-design aimed at achieving significant cost savings across various operational areas, including manufacturing, transportation, and procurement. It emphasizes the importance of innovation in product development to enhance efficiency and reduce expenses.
The slide is structured into 4 main categories of product re-design: Design for Lower Bill of Materials (BOM), Design for Improved Manufacturability, Design for Supply Chain Management, and Integrated IT Architecture. Each category includes specific examples that illustrate how these strategies can be implemented.
For Design for Lower BOM, the focus is on reusing preferred components and standardizing designs. This approach leverages approved supplier lists and modularization to optimize material costs and reliability. The examples highlight how these practices can lead to substantial savings by minimizing waste and maximizing resource utilization.
In the Design for Improved Manufacturability section, the slide discusses the importance of aligning manufacturing processes with the bill of materials. This integration helps streamline operations, reduce engineering change requests, and embed manufacturing capabilities within R&D processes.
The Design for Supply Chain Management emphasizes the need for product redesigns that make packaging lighter and more efficient, citing Nokia's success in achieving significant annual savings through such innovations.
Lastly, the Integrated IT Architecture section underscores the necessity of enhancing IT systems to support product design improvements. This includes integrating Product Lifecycle Management (PLM) and Supply Chain Management (SCM) systems for better information exchange.
Overall, the slide conveys that a strategic focus on product re-design can lead to considerable cost reductions, particularly during the R&D and engineering phases, where a significant portion of product costs is determined.
This slide is part of the Cost Reduction Opportunities (across Value Chain) PowerPoint presentation.
This Cost Reduction framework is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It identifies over 45+ Cost Reduction initiatives mapped to the Michael Porter Value Chain.
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Value Chain Analysis Cost Reduction Assessment Supply Chain Management Supply Chain Cost Reduction Product Lifecycle Value Chain Product Development Manufacturing Innovation Transportation
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