Idea-to-Value Approach Improves a Client’s Competitive Position

Client Context

With reduced activity in the oil and gas sector, key industry players have had to rethink their strategies and product offerings to remain competitive.

A major player in the pumps market engaged FESO to redefine its product-related strategies as they faced declining sales and market share in a depressed market. The focus was on reducing Cost of Goods Sold (COGS) across existing product families while closing product offering gaps to maintain competitiveness.

Key Challenges

• Declining sales and margins due to increased competition and market downturn.
• Erosion of market share, particularly in commodity products requiring specialized engineering.
• Lack of a globally aligned product development approach, with teams in different countries working in silos.
• Products designed primarily for Western markets, failing to meet the growth opportunities in Asia-Pacific.
• No systematic fundamental design reviews for mature products.

Approach & Key Success Factors

EFESO applied its Idea-to-Value approach to optimize product development and cost efficiency.

1. Product Development & Design Optimization

• Analyzed the innovation funnel, identifying misalignment between global teams.
• Transitioned from experience-based design to analysis-based design (FEA).
• Conducted structured design reviews to ensure alignment with market needs.

2. Cost Reduction & Manufacturing Efficiency

• Redesigned existing product families for weight reduction through structural optimization.
• Applied DFM (Design for Manufacturing), DFA (Design for Assembly), and DFSC (Design for Supply Chain) to enhance efficiency.
• Optimized casting and manufacturing processes, leading to material and production cost reductions.
• Implemented best-cost designs and sourcing strategies, enabling competitive pricing.

3. Global Standardization & Market Expansion

• Re-mapped product offerings to reduce re-engineering efforts, shortening order-to-delivery lead time.
• Transferred technology and production to Best Cost Country (BCC) locations to enhance profitability.
• Developed a globally coordinated stage-gate system, aligning product development objectives across regions.

Results

25%

Average reduction in COGS across 10 product families.

Over 100

Design change proposals generated and evaluated for cost and performance impact.

Improved

Product competitiveness by aligning offerings to market demand in Asia-Pacific.

Standardized 

Product development across global teams, reducing inefficiencies.

Structured execution

Created model to manage design changes globally.

Sustainability & Long-Term Impact

Following the success of this initiative, the client engaged EFESO to train high-potential employees as Idea-to-Value practitioners, ensuring the long-term capability to drive Value Engineering initiatives and sustain cost savings.