Case Study

Value engineering and should-cost analysis help industrial manufacturing major halve cost of key component’s assembly

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Business challenges

High manufacturing cost overruns created the need for the company to

  • Decrease raw-material cost for fire extinguisher holder assembly without affecting overall functionality and stability
  • Address limited availability of materials and difficulty meeting functional and extinguisher foam specifications

Genpact solution

  • Conducted external and internal research to redefine critical specifications
  • Developed new design of extinguisher assembly through value engineering
  • Conducted should-cost analysis to estimate the cost of the redesigned assembly
  • Saved additional costs through changes in raw material specs, mounting-mechanism procedures, and removal of back support

Business impact delivered

  • Produced new, cost-effective design that consumed half as much material, thus significantly decreasing the client’s exposure to future material costs
  • Fire extinguisher assembly cost reduced by 50%

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