$195M
In annual EBITDA improvement
Driving Long-Term Value Through Lean Product Development in the Energy Sector: Building a Sustainable Innovation System and Operational Excellence Through Lean NPD
Industry: Oil & Gas, Sustainable Energy
Service: Cost and Value Engineering
Service: Operations Strategy and Transformation
Service: R&d and Product Profitability
Our Client
One of the world’s largest providers of products and services to the Energy industry, operating across global markets and focusing on innovation, efficiency, and performance improvement.
The Challenge
- The client faced growing market volatility and cost pressures, requiring a fundamental shift in how products were designed, developed, and launched.
- Intense cost pressures: Threatening long-term competitiveness.
- Inefficient processes: Driving high costs and complexity in design and development.
- Fragmented portfolio: Excessive SKU proliferation limiting operational efficiency.
- Lack of standardization: No unified Lean NPD system to sustain improvement.
Real Results Achieved Together
Through a structured Lean NPD transformation, the client achieved measurable financial impact, portfolio simplification, and a lasting culture of operational excellence.
29%
Reduction in product design costs
93%
SKU reduction, simplifying the portfolio and improving efficiency
Transformation Impact
- Accelerated innovation cycles and reduced time-to-market.
- Established a sustainable Lean NPD framework embedded across the organization.
- Created long-term competitive advantage through systematic Value Engineering and Portfolio Management.
Our Approach
EFESO’s Product Innovation and Value Management (PIVM) experts supported the client through a comprehensive roadmap combining Lean principles, Value Engineering, and Portfolio Management.
Value Engineering
- Applied structured methodologies to identify and eliminate design-driven costs.
- Implemented set-based concurrent engineering to balance performance, cost, and manufacturability.
Portfolio Management
- Conducted an extensive SKU rationalization program to reduce product complexity.
- Streamlined offerings, achieving significant simplification across key portfolios.
Lean Product Development
- Embedded Lean principles to improve project flow and speed-to-market.
- Institutionalized set-based development to minimize costly design iterations.
- Established a culture of continuous improvement and sustained Lean NPD practices.
Related Services
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.
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.
R&D and Product Profitability
Markets demand profitable innovation faster than ever. We optimize the entire product lifecycle through design-to-cost, rapid prototyping, and portfolio profitability management.
Facing Similar Challenges?
- Need to reduce product design costs while accelerating innovation.
- Looking to streamline product portfolios and improve operational efficiency.
- Seeking to embed Lean Product Development as a long-term business capability.
- Aiming to create measurable financial impact through Value Engineering.
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