When
the market is asking for draconian cost reductions and your raw materials costs
are spiraling out of control, where do you turn for savings? For most manufacturing
companies, labor costs are only 5-20% of total costs and overheads are fixed
in the short term. How, then, can material and process costs be dramatically
reduced without price concessions from suppliers? The answer is Value Analysis
Value Engineering (VaVe).
Argo's industry-leading VaVe approach has helped hundreds of companies achieve millions in savings. Representative past assignments include: a company that faced a 17% cost reduction demand from Wal-Mart and risked losing its business to a Chinese competitor; and a business which had contractually agreed to deliver a 5% cost reduction to a customer each year for five years, but could not find any more opportunities to cut costs.
Yet the value we offer consists not only in helping you to implement VaVe for your products. Our VaVe analysis will first guide you in choosing the right products to which to apply VaVe. There are over 100 VaVe projects which, potentially, may be performed by any business. Some projects will improve your profits by $50,000. Others will save you $5 Million. We will, via VaVe analysis, uncover those projects affording you the greatest opportunity to improve profits - in the shortest implementation time and with the smallest possible investment.
A typical VaVe process reduces the total cost of a product by 10-30%. We have never made a reduction lower than 7%. To date our highest cost reduction achieved is over 70%. Please contact us for more information.