RFQ (Quote) Success Rate
You quote for many parts, but few get converted in Purchase Order in your favor. This might have surprised or worried you and aroused the curiosity to know the reason. If RFQ success rate is very high, it can mean orders for you every time, good news, congratulations …!!! , Hold on, it can be an indication of low profitability or losses in future due to under quoting. To get orders is good, but to get healthy orders is what you should be looking at. Balance is the key, monitor your RFQ success rate and trends may prompt you to analyze it further for better profitability of your company.
In negotiations, it is normally observed that either in curiosity, to honor a relation or under pressure, you may agree a price , the phenomenon called “The danger of selling at price”. TPA helps you go prepared with data and acts as a traffic light signal, telling you where to stop and say no. If you are not able to detect the bad price part, it will make losses for you
Today, in some organizations, it is mandatory to furnish detailed cost break ups along with the quote. Due to lack of time and focus on main business activities, you are not able to provide and it becomes a reason for not selecting your bid. We can do this for you , as per the guidelines provided by you and as per industry benchmark , in a convincing format , increasing the chances of your bid winning a healthy order and a feeling of trust to your Buyer.
(Crossing the threshold – Exploring the best)External experts evaluate and analyze cost comparisons for alternative product versions (e.g. competitor products, alternative product designs).
Best practice-determination of product-specific manufacturing processes and cost structures based on tried and true benchmarks.
Along with customer nominated CFT , Approaches for the comprehensive cost optimization of pre-series and serial products (e.g. loss products) are generated and evaluated in terms of potential capacity.
It helps in identification of Cost reduction potentials , design simplification , generation of VA-VE ideas , enhance customer & competition centric new product developments.
Case Study – Competition Product Cost Benchmark
Product Cost Benchmarking aggregate wise contribution study helped the organization to achieve:--
Product Cost Benchmarking aggregate wise contribution study helped the organization to achieve:--
- Identify cost reduction Potentials.
- Generate VA/VE ideas for improvement in product & reduce cost.
- Insight of competition cost structures & their impact on customer.
- Aggregate wise detailed analysis to pin point the focus areas.
- Self realization of available options in proprietary spend category .
- Feature wise contribution in the machine cost & customer focused enrichment of product.
- Adopting and incorporating best practices in design upgrades resulting in optimal cost & compressed lead time from design to market.
(Design diligently for optimum cost )
80-90% of the product cost is built-in at design stage , selection of materials , manufacturability , tolerances etc.TPA helps is concurrent costing of different concepts with minimal effort to evaluate the cost performance of design , resulting in optimum compatible design selection.
80-90% of the product cost is built-in at design stage , selection of materials , manufacturability , tolerances etc.TPA helps is concurrent costing of different concepts with minimal effort to evaluate the cost performance of design , resulting in optimum compatible design selection.
Cost optimization for product design and engineering, creating value while maintaining capacity and quality (cost-orientated creation of product value).
Bottom-up-validation at an early stage, detailing and the trace of the target performance during the product development process.
Sustainable re-establishment of the competitiveness of serial products that have experienced a market-driven decline in prices and margins.
- Cost Reduction Potentials - Identification & Realization
Dynamic market conditions may force us to re-visit the cost of parts. Low volumes & unpredictable factors during initial development gets stabilized with time , with opportunity for cost reduction . On the contrary process cost drivers like labor wages , electricity charges witness increase. TPA helps you to evaluate all the aspects before approaching suppliers for negotiations. In few instances , the part costs were settled in past and still may have cost reduction potentials , TPA efficiently does this for you.
Manufacturing optimization(Creating value through Supplier Partnerships)
Optimization of the product costs by increasing operative manufacturing efficiency, focusing directly on the relevant cost drivers.
Integration of the value stream mapping method into bottom-up calculations and product cost analysis (cost-orientated process value engineering).
Valid monetary quantification of the cost-per-unit effects caused by measures taken to change and optimize product manufacturing processes.
Optimization of the product costs by increasing operative manufacturing efficiency, focusing directly on the relevant cost drivers.
Integration of the value stream mapping method into bottom-up calculations and product cost analysis (cost-orientated process value engineering).
Valid monetary quantification of the cost-per-unit effects caused by measures taken to change and optimize product manufacturing processes.
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