
Cost Engineering
Andreas Rennet
6 min read
Why many workshops disappoint
Cost-down workshops often bring the right people into one room, yet produce only generic ideas such as “change supplier”, “reduce material” or “simplify design”. The issue is rarely a lack of creativity. It is usually insufficient preparation. Without a cost baseline, product facts, requirements and decision criteria, participants discuss opinions rather than opportunities.
A productive workshop is a focused engineering process. It connects customer requirements, product functions, cost drivers, manufacturing knowledge and supplier market information. The objective is not the longest idea list, but a portfolio of technically credible measures that can be implemented.
Prepare the fact base
Before the workshop, the team should define the product scope, current cost and target gap. A structured bill of materials, cost breakdown, drawings, specifications, volume assumptions and supplier information should be available. High-cost components and unusual cost drivers are highlighted. Comparable products, technologies and materials are researched.
Requirements should also be reviewed. Teams often discover that specifications have been copied from previous products, include large safety margins or combine several customer needs into one restrictive technical solution. Challenging these assumptions can unlock more potential than negotiating the existing design.
Use function-oriented methods
During the workshop, the product is analysed by function rather than component alone. Questions such as “What must this element achieve?”, “How else could the function be fulfilled?” and “What cost is allocated to this function?” open the solution space. Function trees, function-cost analysis, Kano models, SCAMPER, TRIZ principles and morphological boxes can be used depending on the challenge.
The group should include development, purchasing, manufacturing, quality, product management and, where useful, suppliers or external experts. Different perspectives are essential because cost potential often lies between disciplines.
Evaluate ideas immediately
Ideas should be described specifically enough to estimate their impact. Each idea is assessed against cost potential, technical feasibility, customer impact, validation effort, investment and timing. Quick wins are separated from structural redesign measures. Duplicates are combined and dependencies are identified.
Where possible, rough cost models should be available during the session. This prevents the team from spending time on changes that sound attractive but have little financial impact. It also helps compare alternatives objectively.
Secure implementation after the workshop
The output should be a measure portfolio, not a photo of sticky notes. Every selected action needs an owner, next step, decision date and quantified range. Open assumptions and required tests are documented. A review cadence is established and the baseline is protected against double counting.
A successful workshop creates momentum because participants understand both the technical reasoning and the business value. With good preparation and disciplined follow-up, one or two days of cross-functional work can generate a pipeline that supports months of focused implementation.
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RENNET combines industrial expertise, Cost and Value Engineering methods, manufacturing knowledge and digital tools to support fact-based product decisions.
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Overview · Analysis · Implementation