Cost & Value Engineering
"We optimize the manufacturing costs of your products, taking into account current and future customer needs. Yes we can!""
Product doctor, technology expert, cost optimizer, yield enhancer...
Our customers have already given us many creative names. To make them fit for their competitive environment, we examine and analyze their products along the value chain and scrutinize all costs.
The world of our service offering is quickly explained. We identify cost drivers, create cost transparency and make your existing products fitter for the market.
- Manufacturing companies value us for:
- an agile team of product, design and manufacturing experts
- 30 proven methods and processes
- software developed in-house
- a lot of know-how from more than 24 years
- a healthy pinch of shirt-sleevedness and down-to-earthness
We know our customers' world inside out. And also their "pain points". Two things are always in short supply: time and money. For a product to succeed in the marketplace, both components must be used optimally. We are dedicated to the mission of increasing your profitability by detecting any waste and making your products future-proof and competitive.
We are experts in cost-oriented product development that evaluates the benefits for end users. We work together with you to optimize manufacturing costs. We evaluate production materials, production processes as well as the product design and the technology used - always in close cooperation with the disciplines of sales, product management, design, purchasing, production and quality assurance.
Optimisation of production costs for products in series production
Potential Ø 11 %
Our focus is on lowering production costs in order to improve the short and medium-term operating result. We work intensively with the sales, product management, design/development, purchasing and production departments in order to exploit the greatest possible potential.
We proceed in three stages:
- Scoping: We identify the leverage with the greatest savings potential.
- Analysis of potential: We develop tangible measures to optimise production costs in terms of material, design and process.
- Implementation: We implement these measures together with you and implement them in the product management, design, purchasing and production departments.
Cost-oriented product development
Potential Ø 28 %
We combine the needs of your customers with production cost targets. We apply methods such as design thinking, value analysis and DFA. We ensure a cost-optimised product structure with the benefits for the customer in mind.
With the consistent application of target costing, we create transparency and fact-based decision-making tools for the entire development process. This allows you to keep production costs under control right from the development stage and, at the same time, integrate newly acquired knowledge into your standard workflows.
Additive Manufacturing
Additive manufacturing has increasingly established itself as a technology in recent years. In addition to the conventional applications in prototype construction, the process is also used in after-sales, tool construction, individualised series production (medical technology) and in series production of small parts with unit numbers of up to 1000.
For many of our customers the question is whether the introduction of such technology is beneficial. We evaluate your parts range quickly and accurately to assess whether a change will pay off immediately or strategically when it comes to the costs of implementing 3D printing technology. For the potential we identify, we develop tailor-made concepts for implementation in cooperation with you.
Organisational Development Cost Engineering
We want to sustainably optimise your product costs and set you up securely for the future. We do this in a systematic manner and also consider the interaction and integration of your individual departments, such as sales, product management, design/development, purchasing and production. We develop the necessary know-how in your company and enable you to act independently with newly acquired knowledge - with the help of technical specialists as well as methodology and technology experts. The organisational development is supported by our school of excellence, in which the necessary know-how is developed in all departments. We will act as a mentor and provide specific training for all the necessary skills and methods.
Once the value of a component is analyzed, its price and functionality can be evaluated. The course is set especially at the beginning of a product's development. At this stage, it is essential to scrutinize and prioritize customer wishes and demands and to optimally present market requirements in the development.
Traditionally, prices are calculated from the bottom up: Based on the costs, a market price is calculated taking into account the profit margin. Target costing, on the other hand, pursues a top-down approach, i.e. starting from a marketable price, an acceptable price will be determined. This price ceiling or maximum price limit – also called target price – is realized by applying design-to-cost. The clear objective is now to realize this price in combination with the required functionalities. Cost simulations can examine effects on the price during the development.
Vitally important for the successful implementation of a design-to-cost project is the successful collaboration of developers and buyers, controllers and other team members. The necessary mutual understanding for the requirements of the respectively other team members is developed in workshops under the management of experienced Kerkhoff Cost Engineering consultants.
The longer-term success – even beyond the projects with Kerkhoff Cost Engineering – will be ensured through the implementation of the system as well as the offer to purchase the KCA Software (Kerkhoff Cost Analysis).
Exemplary project contents:
- Surveys on marketable prices (e.g. benchmarking, competitive analysis)
- Calculation of current manufacturing costs by means of a value analysis
- Design-to-cost workshopsSimulation of price development in case of design changes
The purchase price analysis by Kerkhoff Cost Engineering consultants is more than just an analysis: It is a multiple process for the optimization of supplier relations.
The objective of a purchase price analysis is to improve our client's negotiating position by using the recently achieved price transparency of step one. Because instead of facing a "black box", the client will be able to scrutinize a supplier's calculation based on a detailed cost breakdown. An open and constructive exchange of information develops, which will be documented in step three, i.e., in audits at the suppliers' premises or even in workshops at our client's site. It is not uncommon that optimization levers will become apparent on both sides.
Jointly elaborated findings or insights will enable savings to be made. The result of a purchase price analysis will decide on further measures, such as target costing or a make-or-buy analysis.
Step 1: Costing Target
Should costing is used to calculate a reasonable price because transparency is the prerequisite for target-specific communications.
Step 2: Potential Analysis
It compares the purchase price with the calculated price and with market prices. Thus, a realistic savings potential will be assessed.
Step 3: Supplier Workshop and Audit
The calculated prices are validated.
Step 4: Price Adjustment
On the basis of the elaborated results, negotiations will be conducted and savings potentials realized.
Exemplary project contents:
- Should costing of purchased parts
- Should costing of parts from in-house production
- Determination of savings potentials
- Realization of savings potentials in supplier workshops
- Active support in price negotiations
Prime cost analysis pursues the objective of complete cost transparency within a company's own product portfolio.
Knowing about prime costs as the basis of calculating own contribution margins seems self-evident. However, according to our experience, the corresponding data often do not exist, had not been adjusted after changes were made, or they are inaccurate or even wrong. Consequences are correspondingly high business risks and idle opportunities since all major corporate functions – such as production, controlling and sales/distribution, all the way to corporate management – can only make the wrong decisions on the basis of inadequate or wrong basic data.
Exemplary project contents:
- Calculation of competitive sales prices
-Revealing tops and flops or best and worst sellers
-Careful consideration of investment decisions
-Determination of locationStatus quo – necessity of value analysis approaches
First of all, Kerkhoff Engineering benchmarking means that not only products from our clients are broken down to their constituent parts but competitive products as well. This is done either at our workshop in Düsseldorf or on the client's premises upon request. In a subsequent step, the material properties and manufacturing methods employed will be ascertained and the corresponding costs calculated. To this end, our databases have comprehensive cost information available – about machines, processes as well as regionally specific wages and salaries.
By means of direct comparisons, it is possible to weigh strengths and weaknesses of the different solution approaches applied against the corresponding costs in a direct context. For a successful implementation of the "right" approach, the solution approaches are evaluated in terms of dependencies and necessities of changes in production. Potentially opposite effects will be identified and, if possible, eliminated. Investments and their refinancing will be calculated. As a result, the individual best-practice approach develops which, subsequently needs to be transferred into a changed product.
Exemplary project contents:
- Competitive analysis
- Ascertain stress test necessity
- Developing value analysis optimization approaches
- Secure development potential and innovativeness
With the help of the Kerkhoff toolbox, the consultants from Kerkhoff Cost Engineering are able to compare the costs of in-house production with the option of additional purchasing. Since a make-or-buy decision quite frequently is not only commercially important but also has great strategic importance, strategic considerations are taken into account, of course, within the scope of our consulting. Unique selling propositions, risks of plagiarism or other sensitive aspects may be the reason why in-house production should be continued even if results show that in-house production would not be worthwhile for individual products or parts. Optimization potentials regarding value analysis factors should then be taken into account to improve the situation or even arrive at a viable production concept.
Exemplary project contents:
- Should costing of purchased parts or parts from in-house production
- Benchmarking of suppliers
- Value oriented design
- Consulting for strategic orientation
While the purchase price analysis has its focus on prices, the value analysis is focused on functions. The priorities of functions are to be determined by specific techniques, such as the pareto or ABC analysis. In a next step, the selected functions are allocated – in a matrix – to the corresponding costs.
It is intended to meet customer requests in the best possible way at lowest possible costs. Concept approaches of value-oriented design and also of design to cost are used in this respect. Key to the success is the focus on relevant characteristics and the design optimization.
With a focus on sustainability, we aim to use resources more efficiently and in a more environmentally friendly way. For example, using recyclable materials or reducing the amount of packaging can reduce environmental impact. We also increase sustainability as a team by extending product life or optimizing processes and supply chains. So costs are reduced, as well as environmental impact minimized and resource efficiency improved.
Value analysis is genuine teamwork – between the individual organizational units at the client company and in collaboration with the consulting specialists. Any successful value analysis will therefore need the intensive cooperation of development, purchasing, marketing and production. In this respect, the specialists from Kerkhoff Engineering will provide support through measures of team building and moderation.
Exemplary project contents:
- Pareto or ABC analysis for prioritization
- Survey of customer requirements
- Survey of cost parameters in production / should costing of purchased parts
- Value oriented design/ design to cost workshops
- Team building/ moderation of change processes
Calculation of product costs
We eliminate cost drivers and develop solutions.
Calculation service costs
No matter which ones you use, aren't you interested in what they actually cost?
Cost Engineering
"Wir optimieren die Herstellkosten Ihrer Produkte unter Berücksichtigung aktueller und zukünftiger Kundenbedürfnisse. Yes we can!"
Produkt-Doktor, Technikversteher, Kostenoptimierer, Rendite-Verbesserer...
Unsere Kunden haben uns schon viele kreative Namen gegeben. Um sie fit für ihr Wettbewerbsumfeld zu machen, durchleuchten und analysieren wir ihre Produkte entlang der Wertschöpfungskette und hinterfragen sämtliche Kosten.
Die Welt unseres Leistungsangebots ist schnell erklärt. Wir ermitteln Kostentreiber, schaffen Kostentransparenz und machen Ihre Bestandprodukte fitter für den Markt.
Produzierende Unternehmen schätzen uns für:
- eine agile Mannschaft aus Produkt-, Konstruktions- und Fertigungsexperten
- 30 erprobte Methoden und Verfahren
- eine selbst entwickelte Software
- jede Menge Know-how aus über 24 Jahren
- eine gesunde Prise Hemdsärmeligkeit und Bodenständigkeit
Wir kennen die Welt unserer Kunden ganz genau. Und auch ihre „Schmerzstellen“. Zwei Dinge sind immer knapp: Zeit und Geld. Damit ein Produkt Erfolg hat im Markt, müssen beide Komponenten optimal eingesetzt werden. Wir haben uns der Mission verschrieben, Ihre Profitabilität zu steigern, indem wir jegliche Verschwendung aufspüren und Ihre Produkte zukunftssicher und wettbewerbsfähig gestalten.
Wir sind Experten für die kostenorientierte Produktentwicklung, die den Nutzen für die Endverbraucher bewertet. Gemeinsam mit Ihnen arbeiten wir an der Optimierung der Herstellkosten. Wir bewerten Produktionsmaterialien, Produktionsprozesse sowie das Produktdesign und die eingesetzte Technologie – grundsätzlich in enger Verzahnung mit den Disziplinen Vertrieb, Produktmanagement, Konstruktion, Einkauf, Produktion und Qualitätswesen.
Herstellkostenoptimierung für Produkte in Serie
Potential Ø 11 %
Unser Fokus liegt auf der Reduzierung der Herstellkosten zur kurz- und mittelfristigen Verbesserung des Betriebsergebnisses. Um das größtmögliche Potenzial ausschöpfen zu können, arbeiten wir eng mit den Disziplinen Vertrieb, Produktmanagement, Konstruktion/ Entwicklung, Einkauf und Produktion zusammen.
Wir gehen dabei in drei Phasen vor:
- Scoping: Identifikation der Stellhebel mit dem größten Einsparpotenzial.
- Potenzialanalyse: Maßnahmenentwicklung zur Herstellkostenoptimierung im Hinblick auf Material, Design und den Prozess.
- Umsetzung: Gemeinsame Umsetzung zur Etablierung in den Fachbereichen Produktmanagement, Konstruktion, Einkauf und Produktion.
Kostenorientierte Produktentwicklung
Potential Ø 28 %
Wir verbinden die Bedürfnisse Ihrer Kunden mit den Vorgaben der Herstellkosten. Dabei wenden wir Methoden wie Design Thinking, Wertanalyse und DFA an. Den Kundennutzen genau im Blick, ermöglichen wir eine kostenoptimale Gestaltung des Produktes.
Durch die konsequente Anwendung des Target Costing stellen wir Transparenz her und schaffen faktenbasierte Entscheidungsgrundlagen für den gesamten Entwicklungsprozess. So haben Sie die Herstellkosten bereits in der Entwicklung im Griff und können nebenbei das Neugelernte in Ihre Standardabläufe integrieren.
Additive Manufacturing
Das additive Manufacturing hat sich in den letzten Jahren als Technologie zunehmend etabliert. Neben den klassischen Anwendungen im Prototypenbau hält das Verfahren Einzug in den Aftersales, im Werkzeugbau, individualisierte Serienfertigung (Medizintechnik) und in Serienfertigungen kleiner Teile mit Stückzahlen bis 1.000.
Für viele unserer Kunden stellt sich die Frage, ob sich die Einführung der Technologie lohnt. Wir bewerten für Ihr Teilespektrum schnell und genau, ob sich im Hinblick auf die Kosten der Neueinführung der 3D-Druck-Technologie eine Umstellung unmittelbar oder strategisch auszahlt. Für die erkannten Potenziale entwickeln wir mit Ihnen maßgeschneiderte Umsetzungskonzepte.
Organisationentwicklung Cost Engineering
Wir wollen Ihre Produktkosten nachhaltig optimieren und Sie für die Zukunft sattelfest aufstellen. Dabei gehen wir systematisch vor und betrachten auch das Zusammenspiel und die Verzahnung Ihrer einzelnen Organisationen - Vertrieb, Produktmanagement, Konstruktion/Entwicklung, Einkauf und Produktion. Wir bauen das notwendige Know-how in Ihrem Unternehmen aus und befähigen Sie zum selbstständigen Handeln mit neugewonnenem Wissen - durch Fachexperten, Methoden- und Technologiespezialisten. Unterstützt wird die Organisationsentwicklung durch unsere Kompetenzschule, in der das notwendige Know-how über alle Bereiche aufgebaut wird. Hier schlüpfen wir in die Rolle eines Coaches und schulen gezielt alle erforderlichen Skills und Methoden.
Einige Schlagworte aus der Welt in der wir aktiv sind und beispielhafte Projektinhalte:
Target Costing: Erhebungen zu marktfähigen Preisen (z. B. Benchmark, Wettbewerbsanalyse), Kalkulation aktueller Herstellungskosten mittels Wertanalyse
Design-to-Cost-Workshops, Simulation der Preisentwicklung bei Designänderungen
Einkaufspreisanalyse: Should Costing von Zukaufteilen, Should Costing von Eigenfertigungsteilen, Bestimmung von Einsparungspotenzialen
Realisierung von Einsparungspotenzialen in Lieferanten-Workshops, Aktive Unterstützung bei Preisverhandlungen
Selbstkostenanalyse: Kalkulation wettbewerbsfähiger Vertriebspreise, Aufdeckung von Rennern und Pennern, Abwägung von Investitionsentscheidungen
Standortfestlegung, Status quo - Notwendigkeit wertanalytischer Ansätze
Produkt-Benchmark: Wettbewerbsanalyse, Stresstest-Notwendigkeit ermitteln, Erarbeitung wertanalytischer Optimierungsansätze, Entwicklungspotenzial und Innovationsfähigkeit sichern
Make-or-Buy-Analyse: Should Costing von Zukaufteilen oder Teilen aus der Eigenfertigung, Benchmarking von Lieferanten, Value Orientated Design, Beratung zur strategischen Ausrichtung
Wertanalyse:
Pareto- bzw. ABC-Analyse für die Priorisierung, Erhebung von Kundenanforderungen, Erhebung von Kostenparametern in der Fertigung/ Should Costing von Zukaufteilen, Value Orientated Design/ Design to Cost Workshops, Teambuilding/ Moderation von Veränderungsprozessen
