Category: Success stories

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.

Key achievements

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.

Objective & context

We supported the French innovative start up designing the 2D solar trackers with the international sourcing activities on the steel structure.

Key achievements

Based on the design optimization study we conducted the best in cost sourcing research.
Firstly, we defined with the customer the potential supplier panel depending on the final installation location, steel prices and local machines parc.
Secondly, we contacted the suppliers in Turkey, China and Eastern Europe, communicated the cost targets and received the commercial offers.
And finally, we organized the visits with the mechanical lead engineer and the project director of the local suppliers to evaluate the production lines and negotiated the prices.

Added value & customer benefits

We succeeded to divide by 3 the first mechanical design costs and confirmed these costs with the suppliers offers. The project was bought by the leading electrification group.

Objective & context

We worked on the design to cost optimization for the new cabin equipping the multi range tractors of the German and French agricultural machine manufacturer. The aim is to design the future generation of the cabins and reduce the production costs to fit the profitability targets of the cabin project but also to contribute to the profit generation of the different tractors project (small-medium, medium and large size).

Key achievements

Organize the multi disciplinary teams per work package set up around the common profitability goals.
Define the cost drivers per commodity (by leading the workshops of brainstorming with engineering, purchasing and project management team)
Ascertain the target price for each sub system and commodity at early stage of the cabin design.
Follow the full cabin line up costs and define the opportunities and risks lists per commodity.
Manage the outsourced and internal cost target studies and assist the buyers for their understanding and negotiations with suppliers.

Added value & customer benefits

We obtained total 7% reduction on the project comparing to the previous generation of the cabs with some commodity costs negotiated with suppliers down to -30%. During our mission we also helped to adapt the customer’s “luxury conception culture” in the design phase to the cost target-oriented approach by sub-system managed by cost integration and their cost drivers understanding, particularly on the interfaces.

Objective & context

To contract and supply the illumination equipment for the Versailles Musical Gardens festival. Our customer is the energy management company, supporting communities in their energy-saving challenges and acting for the preservation of French cultural heritage, asking for the support on the urgent contract they struggled to negotiate.

Key achievements

We draw up the contract with the Canadian supplier, based on the customer’s technical requirements and referenced it to the general industrial purchasing conditions (Orgalime) to secure the act.
We negotiated final prices, payment and delivery terms. We insured the export and import custom process was smooth with the correct Invoice and packing list.

Added value & customer benefits

Secured delivery on time for the installations being ready for the beginning of the festival. The full procedure took 2 weeks to receive the equipment at CDG office.

Objective & context

To contract, to buy and to deliver the equipment for the BIW (Body in white) lines for welding, riveting and plasma brazing for two cabin assembly projects: Volvo trucks in Kaluga, Russia and Daimler trucks in Juiz de Fora, Brazil. Svarog was contracted by the engineering company in charge of concept and 3D simulation for the cabin’s lines.

Key achievements

We consulted the suppliers in Europe, Turkey and locally for to supply the last generation equipment (manual welding clamps, mechanical jigs, pneumatic and electric equipment etc) based on the technical requirements of our customer. Defined the conditions of import and Incoterms with the local broker(for Kaluga) and delivery coordinator (for Juiz da Fora). Supplied the equipment and found the local sub contractors for small realizations and on-site installation. We also imported the existing jigs from Volvo plant in Thailand to Romania for painting and further on-site delivery.

Added value & customer benefits

Our reactivity, good supplier relationship and knowledge of custom operations permitted to deliver 100% of equipment on time with respect to the profitability and quality requirements of the customer. We also confirmed our ability to work at ease in the multicultural environment.

Objective & context

Building an action plan for an international supplier and a car manufacturer in order to reduce the total delivery cost of Steering systems (42M€ of Turn Over).

Key achievements

2 high runner systems studied – electronic and hydraulic.
Short/mid-term action plans have been defined in 7 weeks with regards to:
Engineering: standardization of electrical cables and screws, replacement of raw material, reduction of right/left steering system parts diversity.
Packaging tier 1 and tier 2: stock reduction at car plant by optimizing logistic shipment parameters, tier 2 lighter packaging use, full truck image implementation at supplier, returnable packaging deployment.
Process: relocation of intermediate assembly line to join the main line, spare parts standardization.
Quality: elimination of 100% control operation at the end of the assembly line.

Added value & customer benefits

Estimated saving at 1,46 M€.

Objective & context

Transverse steering of a multi-business and multicultural team (managers based in France, Russia, South Korea and Romania), to produce the Koleos and Latitude cars in Russia, according to a DKD (Dismantled Knocked Down) scheme: manufacturing the vehicles in Busan, Korea by Renault Samsung Motors, dismantling them into sub-assemblies by a Korean subcontractor, exporting the dismantled parts to Russia via the trans Siberian railway, then reassembling the vehicles at the Renault Avtoframos plant in Moscow.

Key achievements

Management of a weekly transverse steering committee.

Transverse Budget Reporting.

Risk Management.

QC stories.

Weekly interview and executive newsletter.

Added value & customer benefits

Achieving the QCDW goals of the project (27 M€ of extra profit margin in selling 9K vehicles over 2 years).