ideateBenchmark Value - HCL Technologies

analyze

develop

Engineer

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Functionality

ideate

Teardown

Innovation

Benchmark Value Value Analysis and Value Engineering (VAVE)

A systematic process involving industry best practices integrated @ HCL, which enables to improve the product cost and profitability without affecting functionality / Quality through the development of alternatives

Market Trends & Business Challenges 

Globalization

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New competitors from emerging markets

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User driven market with great focus on cost

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Margin Erosion

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Increased product variants leading to long lead time to market

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Product not reflecting market trends

There is a need to compare products with the competitors, reduce the variations within the product family from design philosophy, and need to optimize the cost paid to the parts supplier, to increase profitability.

HCL’s customized solution – VAVE Process 1. Product Selection Portfolio Analysis: Select the right candidate for VAVE from the Portfolio of Products (OR) Feasibility Analysis: Study Feasibility of achieving objectives by VAVE on customer selected product

7. Implementation     

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Redesign based on Approved Project Plan Create working prototype of new design with BoM Final testing completed Re-certifications or product approvals completed Product released to manufacturing for full scale production Savings realized

6. Evaluation & Recommendation 

Validate the technical feasibility & economical viability of selected ideas

Consolidated report with technical & Financial justifications  Business Viability (ROI calculations)

7 6

1 VAVE

Methodology

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5

5. Prioritization

4

3

Prioritize the ideas based on various criteria and their weighted scores.

4. Ideation

2

2. Information Collection Collect all the relevant information of the product to enable the conduction of VAVE

3. Study Phase Teardown: Strip the product to its parts level, identify and label the parts with basic details like weight, material, size, quantity and cost Cost Modeling: Estimate the cost of each part & assembly considering its various cost drivers. Benchmarking: Compare functionally similar parts of products for cost, function and / or performance. Function Analysis: Analyze the various functions performed by the product and build a FAST diagram. Compute the Function Cost, Function Worth and Value Gap

Generate ideas by focused brainstorming on various opportunities identified

What can HCL help with? HCL can engage and support your initiative to become competitive in the following ways

Compete

Benchmark Nego ate

Should Cos ng Cost Improvement

Value Analysis

• HCL's VAVE can provide in-depth insights with regards to where you stand against your compe on

• Understand the key cost drivers in your product(mechanical, electrical and electro-mechanical) • Have a basis point for nego a on with supplier

• HCL's VAVE systema cally analyse product to generate the right ideas towards cost improvement • Implement and get paid-back

Why HCL’s VAVE? HCL’s VAVE program is very unique and at the same time tailor made to address a wide gamut of scenarios

People 200+ trained

Exper se Across Product / process Domains

Investments Teardown Labs Global cost Database

Process Matured process establised over 5 years

Total Savings USD 600M Poten al

IdeasƉĞƌProject 137(Avg.)

Integrated Service Electrical + Mechanical + Electromechanical Tool Expertise Apriori, Boothroyd Dewhurst, PCS

Implementable Ideas 30% (Avg.)

Hello, I'm from HCL's Engineering and R&D Services. We enable technology led organizations to go to market with innovative products and solutions. We partner with our customers in building world class products and creating associated solution delivery ecosystems to help bring market leadership. We develop engineering products, solutions and platforms across Aerospace and Defense, Automotive, Consumer Electronics, Software, Online, Industrial Manufacturing, Medical Devices, Networking & Telecom, O Automation, Semiconductor and Servers & Storage for our customers. For more details contact: [email protected] Follow us on twitter: http://twitter.com/hclers and our blog http://ers.hclblogs.com/ Visit our website: http://www.hcltech.com/engineering-services/