Cost and Value Engineering
Rising costs demand optimization from design through production. We apply cross-functional value engineering, zero-based redesign, and continuous cost tracking to protect margins.
Boosting Affordability in Military Aircraft Manufacturing
A leading aerospace manufacturer faced competition from simpler trainers costing half the price of its own high-performance military aircraft. Together, we implemented a structural affordability initiative addressing both acquisition and lifecycle costs.
Industry: Aerospace & Defense
Service: Cost and Value Engineering
Service: Operations Strategy and Transformation
Our Client
A leading manufacturer of civil and military aircraft with global reach. The company’s military trainer division produces sophisticated aircraft positioned at the high end of the market, featuring unique capabilities. It operates across the aerospace and defense sector, serving ministries of defense worldwide.
The Challenge
The company needed to increase sales of its military trainer aircraft despite competition from simpler trainers that cost half the price. The CEO initiated a structural affordability program to address this market challenge through comprehensive cost reduction.
Key obstacles included:
- Technical complexity barriers: Aircraft equipment required sophisticated design-to-cost analysis while managing certification issues and technical performance constraints that limited implementation options
- Conservative engineering culture: R&D and engineering teams were sometimes resistant to changes for cost reduction
- Limited supplier collaboration: Some tier 1 suppliers were reluctant to share information so an independent third party was required to identify the potential opportunities
Real Results Achieved Together
The affordability program successfully reduced lifecycle costs while maintaining the aircraft's high-performance standards. Working across the entire equipment scope in one analysis phase and two execution waves, the transformation exceeded targets despite implementation constraints.
Transformation Impact
- Built internal capabilities including playbook, tools and templates for replication
- Established new supplier collaboration model focused on joint cost reduction opportunities
- Created tracking methodology for progress monitoring and results measurement
Our Approach
The engagement combined technical expertise in design-to-cost with strong governance and PMO activities. We developed should-cost analysis for sophisticated equipment even when lacking technical data due to supplier intellectual property constraints. The approach was modular, enabling comprehensive scope coverage in a relatively short timeframe.
Key elements included: cost baseline definition; establishing the EQT cost baseline throughout the entire aircraft lifecycle; priority system selection analyzing part numbers to create an actionable equipment shortlist; and identification of cost reduction initiatives through technical deep dives with different functions. The team challenged Tier 1 suppliers while finding new solutions and processes to optimize maintenance costs. Implementation involved translating initiatives into action with updated supplier agreements, supported by tracking tools for progress monitoring and results measurement.
Related Services
Operations Strategy and Transformation
Helping organizations rethink how they create value. We strengthen performance, build resilience, and accelerate growth across every layer of your business.
Facing Similar Aerospace Affordability Challenges?
- Struggling to compete when simpler alternatives cost half your product price
- Seeking lifecycle cost reductions while maintaining technical performance standards
- Ready to transform supplier relationships into joint value creation partnerships
Discover More Clients Results
80%
Projects realized on-time
Transportation, Logistics and Services
Achieving Sustainable Transformation, From Vision to Strategy and Implementation, for a Major European Port
Transformed Europe's second-largest port into climate-neutral hub while increasing throughput and securing substantial EU funding.
>98.5%
Delivery readiness level consistently maintained despite inflation, sustainability investments and 12% volume growth
Food & Beverage
Unified Performance and Culture Transformation Across a Global Food Network
An eight year journey hardwired a common way of thinking and working into the organization, enabling Bell Food Group to sustain delivery performance above 98.5% despite rising costs and market complexity.
~10K m²
Optimized factory footprint
Aerospace & Defense
Designing a Future-Proof Drone Factory Through Modular Factory Planning
Design of a future-proof, modular drone factory enabling multi-product manufacturing, rapid scalability, and optimized investment for aerospace defence applications.
35%
Reduction in logistics headcount through automation
Food & Beverage
Enabling Efficient Greenfield Dairy Operations Through Production and Logistics Planning
EFESO supported the design and realization of a 30,000 sqm greenfield dairy plant, delivering an integrated factory planning concept with full automation and optimized material flows and scalable operational concepts.
+10K
Pallet positions created through optimized DC layout expansion design
Life Sciences
Feasibility Study Enables +10,000 Pallet Pharma Distribution Center in Romania
EFESO conducted a feasibility study for a new 10,000-pallet automated warehouse in Romania, optimizing logistics design, layout, and CAPEX to enable scalable, efficient pharmaceutical distribution.
16–23%
Potential cost savings identified on key bill of materials components
Automotive and Commercial Vehicles
Empowering Cost Transparency for High-Volume Battery Module Supply
A mid-sized European automotive supplier develop a robust cost model and uncover savings for a high-voltage battery module, strengthening internal alignment and negotiation readiness.
+5–6%
EBITDA expected in 5 years
Life Sciences
Redesigning Operations and Optimizing Supply Chain in Cosmetics Production
EFESO supported a major cosmetics supplier in redesigning operations across six factories and optimizing the supply chain, targeting improved productivity and long-term profitability.
+25
Business cases initially identified
Consumer Goods and Luxury
Delivering a 10-Year Growth Strategy in Partnership with a Leading Luxury Company
Design and implementation of a 10-year strategy targeting 4% annual growth for a world-leading luxury group, focused on aligning operations.