Cost optimization & Cost reduction

Myth #2: Value Engineering can be considered at the end of the manufacturing process

• Value engineering is a continuous evaluation from day one to optimize the manufacturing cost. • All aspects of design, engineering, quality maintenance, regulatory, supply chain, and branding necessary to pen down a more concise list of everything you do to identify areas of cost-cutting. • Every component substitution, or additional feature must be analysed to enhance cost optimization and subsequently boost product value.

Myth #3: Value engineering negatively impacts user experience

• it’s important to understand that unnecessary features that are rarely used by the endconsumer only add to the cost.

• It’s completely fine to get rid of the unwanted features so that the product manufactured offers a substantial value to the end-user. Add more…

Myth #4: Value Engineering is only about maximizing the ROI

• Yes, the core purpose of value engineering is maximizing ROI but it doesn’t mean it’s only

ROI that matters.

• The critical analysis during value engineering also reveals several other areas of improvement.

• Analysis everywhere opens ways for improvement.

Myth #5: Value Engineered Medical Devices do not deliver on innovation & creativity

• Innovation is compromised for medical devices where value engineering is paramount. • An innovative in medical device requires enormous cost but that’s not always the case. • Often value engineering involves optimizing the design on various grounds to make it more user-friendly. • This means value engineering can also be the reason for an innovative product.

Myth #6: Cost optimization & Cost reduction are same

• Cost optimization in general is understood as the technique to reduce the overall manufacturing costs. • For instance, you might come apportioned in one area can be utilized in other area to improve overall product appeal. • In an organization shifting, reducing, or adding cost at any step, all fall under cost optimization.

Case: Optimizing cost through vendor analysis and Regulatory Assistance

Challenge

• The muscle sculpting device came to Johari’s desk with a very high manufacturing cost. • The client also had a major concern about entering the European market with this product. With current pricing and given features this did not look feasible.

Solution

• At Johari labs, engineering team critically tore down every module of the product to revisualize the model at an optimized cost. • Leveraging an authorized network across multiple geographies. • The industrial design & user interface were enhanced by adding smart id-

Software solution. • Additionally, utilizing the regulatory experience with European markets.

Business Value:

• All together the device was a market success and widely accepted in its domain. • The functionality and competitive pricing have made it one of the preferred choices amongst the market bulk buyers and end-users.

No Regret in Cost Cutting

• It’s a popular belief that opting for a cost-cutting strategy is needed only when an organization is undergoing a financial crisis. • It’s important to have a proper cost-cutting strategy in place to ensure better value at all times. • Medical Device Manufacturing domain requires a proper strategic plan to timely evaluate the costs at various levels. • Prevents sudden loopholes and keeps improvements aligned functioning.

As a growing organization Johari Digital Healthcare Ltd adopts a value engineering approach to deliver quality at an optimized cost. Balancing investments & technology is an art and as a 40+ years global Medical Device Manufacturing company, Johari excels at it. Schedule a consultation for value engineering in your existing medical device.

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