Cost Reduction Study - Advanced Structures India

Cost Reduction by Benchmarking

Cost reduction by benchmarking is a process of studying all cost drivers of our customer's vehicle and their competitor's vehicles by tearing them down and then identifying all cost and cost driver differences to generated cost reduction ideas.

Data Mapping for Cost Reduction

Our journey begins with comprehensive data mapping, powered by xcPEP's cutting-edge capabilities. When it comes to cost-saving strategies, data is key. With the robust data collection and analysis capabilities of xcPEP, we meticulously gather vast amounts of data related to automotive features, architecture, BOM with part data and suppliers.

Feature Data

We map all features, their corresponding BOM items and provide feature based cost analysis.

Architecture Data

We map packaging, position, interface and complexity of the product and its various subsystems to identify cost reduction potential.

BOM & Part Data

We map as many parameters as required to conduct detailed should costing for different commodities. This helps in identifying all cost drivers.

Cost Reduction Idea Generation in xcPEP

engine tear down picture for cost reduction study by advanced structures india

Large amount of data requires large analytical power

Turning data into actionable insights is where our expertise truly shines, with the support of the xcPEP platform. With our analytics and machine learning tools, we transform this data into actionable insights. Here's how we do it:

Delta Analysis

xcPEP conducts a comprehensive delta analysis on all data points captured between your vehicle and your competitor's vehicle.

Idea Generation

This analysis forms the basis for the initial idea pool, covering all cost differences between your vehicle and the competitor's.

Cleanup & Feasibility

xcPEP steps in to clean up this idea pool, removing insignificant and conflicting ideas.

Idea Detailing

These shortlisted ideas are then detailed by our engineers, ensuring they are ready for implementation at your end.

Engineering channels for cost reduction ideas using xcPEP

Decontent

Remove what is not adding value for the customer.

Alternate Material

Is your competitor achieving same outcome with a cheaper material?.

Alternate Manufacturing Process

Are you using the most efficient manufacturing process for your volumes?

Complexity & Joineries

Is your competitor using less parts or more efficient joineries?.

Routing & Packaging

Is your competitor's routing of electrical and fluid circuits more efficient?

Coatings

Is your competitor achieving required performance from a more efficient coating and surface treatment methods?

Commercial channels for cost reduction ideas using xcPEP

Alternate Supplier

Can you source the same part better from a different supplier?

Should Costing

How far is my Should Cost from my actual cost?

Sourcing Decisions

Based on Should Cost and further make vs buy / sourcing location / localization and other decisions.

Cost Reduction Idea Implementation

Digital Implementation Tracking

Instead of creating a parallel organization, this approach enables and strengthens your existing teams to implement better, faster and in a more frugal way.

Dashboards

xcPEP has several dashboards for different stakeholders from procurement, engineering, finance and program management to be able to track the status and savings of the entire activity.

Digital PMO

All activities in xcPEP are fed into various report eliminating the need for a PMO to track progress of the activity or implementation.

Email Updates

xcPEP sends customized and contextual reports to each stakeholder through email at different frequencies.

How are we different from management consultants?

ASI's cost reduction services are built on top of xcPEP. We bring extensive data mapping and analysis capabilities which removes subjectivity from the study.

We are not positioned like management consultants and our approach is fundamentally different, so is our billing.

Cost Efficiency

While consultants often come with a high price tag, ASI's approach is frugal and cost-effective. It leverages data and automation to achieve cost reduction goals efficiently.

Expertise vs Data

Consultants rely on their expertise, which can sometimes lead to a disconnect with internal teams. ASI's approach, on the other hand, empowers internal teams with their xcPEP™ platform, making the implementation process smoother and faster.

Collaboration

Consultants may face high friction when working with internal teams. ASI's approach enables and strengthens existing teams, fostering collaboration rather than friction.

Outcome Consistency

Consultants may deliver mixed outcomes. ASI's approach, backed by data and platform-driven services, is designed to fit on top of ASI's benchmarking, costing, and cost reduction capabilities, ensuring consistent and reliable results.

No Subjectivity

In ASI's data driven approach, all ideas and recommendations are backed with data points and calculations. This removes subjectivity and provides good grounds for quick decision making.