+20%
Efficiency and effectiveness in capacity utilization
Product Value & Cost Management
Turn cost efficiency into your competitive edge. EFESO helps you embed structured cost management and value engineering across your organization – improving product profitability, optimizing capital expenditure (CapEx or design & development), and unlocking sustainable cost savings.
Controlling Costs in the Long-Term
Across industries, companies are under pressure to reduce costs while protecting value. But most still rely on reactive, short-term measures – leaving untapped potential on the table.
As traditional operating models reach their limits, the inability to anticipate and prevent unnecessary costs has become a strategic risk. Many cost reduction programs overlook interdependencies across functions or product lifecycle stages – resulting in trade-offs that erode long-term value.
EFESO helps clients move beyond isolated savings actions by embedding a cross-functional cost value engineering system. From early product design through to production and negotiation, we identify where your cost structures are no longer providing a competitive advantage – and where you can gain back control. Our goal is to help you anticipate costs, maximize product value and protect margins in a volatile and fast-changing market.
Real Results Achieved with our Clients
30%
Cost savings (materials, production costs, CapEx)
A Tailored and Pragmatic Approach that Fits your Reality
EFESO combines best-in-class cost engineering practices with hands-on delivery. Our cost and value engineering services work alongside you on target cost setting, product cost optimization, capex vs opex analysis, statement of work (SoW) optimization in design and development and carbon footprint reduction.
We'll support your product development, supply chain and capital investment and business case decisions with advanced cost modelling tools, benchmarking and design-to-cost methodologies. Our approach enables proactive cost control and capex optimization that improve both short-term cash flow and long-term value creation.
As part of our integrated cost management approach, we offer services tailored to the most relevant cost types by sales volume, always considering interdependencies. Optimize your product and investment costs sustainably with us.
Target Cost Definition and Cost Management
Sustainable optimization of relevant cost types within your business case through structured target cost setting, monitoring, and control.
Product Cost Analysis and Optimization
Create cost transparency and identify cost drivers to optimize product costs.
Product Carbon Footprint Analysis and Optimization
Determining a product's carbon footprint during manufacturing
Product Concept and Product Design Optimization
Cost-optimized design from early requirements to end of production
Benchmarking
Assess your competitive position by evaluating product cost structures and performance.
Investment Goods Optimization
Optimization of production equipment and machinery
Optimization, Establishment, and Implementation of Cost Management and Cost Value Engineering (CVE)
Outside-in assessment of the current state.
Empowering the organization in cost and value engineering
Enable employees and partners to drive product cost optimization via professional cost management
Target Cost Definition and Cost Management
Sustainable optimization of relevant cost types within your business case through structured target cost setting, monitoring, and control:
- Cost transparency / total cost transparency
- Target cost setting / target setting
- Project budget reviews (e.g. D&D, manufacturing & industrial engineering, project review, etc.)
- Measure definition / total cost optimization
Product Cost Analysis and Optimization
Create cost transparency and identify cost drivers to optimize product costs. Key elements include:
- Bottom-up cost structure analysis (CSA / should costing) using best practices
- Cost derivation and parametric models as well as AI-based costing
- Tools such as Siemens TcPCM© and Tset©
Support throughout all project phases – from product definition through concept development to consulting on final negotiations
- Validation and best-practice brownfield optimization / process optimization
- Cost structure negotiations (fact-based negotiation along the cost breakdown)
- Cost disclosure and claiming (fact-based open book negotiations with customers)
Product Carbon Footprint Analysis and Optimization
- Determining a product’s carbon footprint during manufacturing
- Identifying cost-effective paths toward climate neutrality
Product Concept and Product Design Optimization
Cost-optimized design from early requirements to end of production:
- Design-to-X (design-to-cost, design-for-manufacturing, design-for-sustainability)
- Modularization and standardization
- Complexity management
- Value engineering (via the Fresh Eyes approach)
- Supplier collaboration
Benchmarking
- Assess your competitive position by evaluating product cost structures and performance.
- Functional cost analysis and identification of improvement opportunities
Investment Goods Optimization
- Optimization of production equipment and machinery – from concept and budgeting to investment procurement
- Support across all project phases – from demand management and concept definition to specification and advisory support during final negotiations
Optimization, Establishment, and Implementation of Cost Management and Cost Value Engineering (CVE)
- Outside-in assessment of the current state:
- Target cost management
- Definition and identification of technical and commercial roles within CVE
- Organizational design
- Collaboration within cross-functional cost management
- Analysis and design of processes and organizational structures to ensure sustainable cost impact
- CVE scope definition and target operating model setup
- Roll-out and integration of CVE
Empowering the organization in cost and value engineering
Enable employees and partners to drive product cost optimization via professional cost management.
Product Value & Cost Management Client Results
€2.7B
Total savings achieved
Automotive and Commercial Vehicles
Automotive supplier needed profitability improvement for complex drive components. We established end-to-end value optimization, supplier collaboration, and cost engineering, improving margins across entire value chain.
-10%
CapEx reduction for new buildings
Aerospace & Defense
Global aerospace manufacturer struggled with 180-site real estate complexity. We established centralized intelligence service, data-driven governance, and sustainability tracking, guiding €7 billion in asset decisions.
8-10%
Transformation cost reduction achieved
Aerospace & Defense
Aerospace corporation faced fragmented digital infrastructure across divisions. We launched enterprise-wide transformation, integrated systems, and drove operational excellence, reducing operational costs by 10%.
The EFESO Touch
Our strength lies in combining deep technical expertise with practical implementation alongside your team. From cost structure analysis and open-book negotiations to capital expenditure planning and cost disclosure training, we tailor our services to your needs.
Cost management is a discipline. We’ll help you make it part of your organization’s DNA – ensuring every product, every investment, and every decision contributes to cost efficiency, value delivery and competitive strength
Meet Some of our Product Value & Cost Management Team Members
Ready to Know Which Products Actually Make Money?
- See true profitability for every SKU in your portfolio
- Stop subsidizing losers with your winners
- Join leaders who doubled margins by killing complexity
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