The mission
To successfully internalize heat pump production within Europe, we aim to develop a comprehensive strategy and cost evaluation.
- Develop and frame the strategy for internalizing heat pump production in Europe
- Conduct a comprehensive cost evaluation of the production process
- Gain detailed knowledge of all components involved
- Formulate a robust sourcing strategy
The challenges
- High maturity level costing achieved in one month
- Identify all opportunities to significantly reduce costs
- Sourcing of critical equipment components in times of shortage
The approach
- Catalog and categorize all parts to build a comprehensive Bill of Materials (BOM) structure.
- Reconstruct the cost structure, including detailed cost breakdowns, labor requirements, and transportation costs.
- Identify preliminary design-to-cost opportunities, sourcing scenarios, and make-or-buy alternatives.
The impacts
- Developed a complete internalization strategy based on in-depth component analysis.
- Characterized 150 components through reverse costing analysis
- Contacted 50 suppliers to establish a strong sourcing strategy
