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
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
20%
Increase in productivity
Resources Mining and Processing
Transforming Mining Operations Through Predictive Analytics and Equipment Performance Improvements
A leading mining company improved mine planning efficiency, equipment utilization, and operational performance through integrated planning systems, predictive maintenance, and real-time monitoring technologies.
20%
Downtime reduction
Industrial Manufacturing
Improving OEE and Production Oversight Through Digital Transformation
A die-cast metal manufacturer improved equipment effectiveness, reduced downtime, and increased operational visibility through predictive maintenance, IoT integration, and real-time production monitoring.
20%
Operating cost reduction
Industrial Manufacturing
Resources Mining and Processing
Delivering Sustainable Mining Performance Through Operational Excellence
A mining company reduced operating costs by 20% through improvements in pit-to-plant planning, asset performance, maintenance reliability, supply chain management, and operational accountability.
15%
Operating cost reduction
Resources Mining and Processing
Reducing Mining Operating Costs Through Operational Excellence
A mining company reduced operating costs by 15% by improving pit-to-plant coordination, maintenance effectiveness, supply chain performance, and operational accountability through a high-performance operating system.
60%
Reduction in workplace accidents
Industrial Manufacturing
Resources Mining and Processing
Improving Safety Performance Through Real-Time Monitoring and Workforce Engagement
A leading mining company improved workplace safety and operational visibility through real-time monitoring systems, digital safety management tools, and targeted workforce training initiatives.
25%
Reduction in project delays
Industrial Manufacturing
Resources Mining and Processing
Building a Digitally Enabled CAPEX PMO for Better Project Performance
A major mining company implemented a centralized CAPEX PMO with digital reporting tools to improve governance, cost control, project visibility, and execution consistency across its capital project portfolio.
$6.5M
Annual margin gain through increased crude throughput
Oil & Gas, Sustainable Energy
Improving Crude Throughput by 25% via Lean Process Optimization
Eliminated naphtha bottleneck through lean optimization, accelerating crude throughput 25% and capturing $6.5M margin gain.
60%
Reduction in start-up time
Food & Beverage
Vertical Start-Up Reduces CAPEX Project Time by 60%
Accelerated CAPEX execution through Vertical Start-Up methodology, reducing project timelines by 60% across European operations.