Value Engineering For Metallic Parts
For A Leader In The Rail Industry

A leading supplier of critical components, locomotives, signaling, and logistics systems to the global rail industry. With best-in-class manufacturing facilities, unmatched digital expertise, always-on global services delivery, unrivaled product breadth, and performance, this ~$11B corporation is the rail industry’s one-stop-shop.

Business Requirement / Challenges

Customer wanted us to conduct Should costing exercise to re-negotiate with the supplier after tearing down of the aftercooler to prepare the models/ drawings. The biggest challenge was assemblies were given without any drawings.

Our Solution / Services

After analyzing and reviewing with our In-house industry SME’s we collected information & identified suitable processes. We recreated the drawing by reviewing the dimensions of every part. We selected materials by checking part material in the metrology lab.

Product cost management tool aPriori used to ensure that a product costing are reviewed and rationalised through renegotiations with vendors based on available options and meets customers expectation of increasing profit margin.

Customer Benefits / Deliverables

Cost Savings of ~$4M per annum without compromising on the quality of parts renegotiated with vendors

Helped customer in renegotiation process with suppliers based on cost parameters derived from this exercise

Ability to manage the inventory of metallic parts more effectively through the online system.