Cost management and optimization project for the railway
Objective & context
Cost optimization and coordination project for the Scandinavian regional trains manufacturing and services contract of the leading train manufacturer.
The objective is to manage the unit cost of the train, reduce it and track the cost evolution.
We ran the internal benchmark studies with other trains designed on the base of the common platform. By gathering the results of design to cost optimization we selected the applicable ideas on each commodity (with the priorities on the high-cost reduction impacts / which can be applied easily or with some conditions). We organized the brainstorming sessions with Engineering, Purchasing and Industrialization departments to complete the ideas, list and define the associated action plans.
We provided first estimation of the projected cost of the train, with Risks and Savings opportunities estimation, and validated these hypothesis with the suppliers and internal production units.
Added value & customer benefits
We managed to mitigate the recent raw material price increase with the countermeasures, defined and validated together with multi disciplinary teams of the customer. We also enhanced the communication on the design to cost methodology’s added value and provided the concrete guidance to improve the margin generated by the project.