Please enable JS

Design to Value project in the Tobacco industry attaining 30% equipment price reduction


The Client is a global leader in tobacco products (both traditional and RRP – reduced risk products). For its next generation RRPs the client wants to reduce the cost of the machines purchased from leading OEMs. At the same time, the Client improve the relationship with its strategic supplier and setup a new collaboration framework, through a Design To Value working together project.

The Challenge

EFESO was appointed in order to setup and run the Design to Value Working Together project between Client and its OEM supplier, and EFESO’s role comprised of the following:

  • Project Management and Guidance
  • Methodology & Tech Expertise
  • Analysis support
  • Facilitation of Adoption, Transparency and Open Book approach


As a result of the project the client:

  • Attained a price reduction of 30%, plus additional Lifecycle savings.
  • It developed as-is and to-be cost model for the equipment, providing a new price baseline
  • Deployed a price vs volumes deployment model embedding best practices and Learning Curves, for additional price benefits over the expected collaboration period
  • Created a book of >60 opportunities with technical and economic details, and risk assessment
  • Phasing plan of saving opportunities