Reducing Aeroengine Costs

Objectives

We were asked to develop proposals for achieving sustainable cost reductions on an aeroengine program to ensure product remained competitive.

Our Approach

We employed SCOS & Project Charter methodology, analysed the product breakdown structure and conducted a supplier spend diagnostic. We held workshops on the product design and manufacture, and with suppliers. We developed a strategic cost reduction programme to improve the value chain, reduce the supply base and formulate new negotiation strategies.

Client Benefits

We supported the execution of the strategic plan and negotiations leading to 15% cost reduction on the engine. Subsequently, our client was able to win a new contract due to the more competitive price.