Reducing costs, increasing profits, taking advantage of digitization opportunities
More than other industries, mechanical engineering must adapt to volatile markets and their impact on incoming orders. Product quality alone is no longer a guarantee of success. Increasingly discerning customers demand individual solutions and short delivery times at low costs. High competitive pressure and at shortage of skilled workers pose major challenges for many companies. Moreover, the digital transformation in developing, constructing and producing machines requires large investments, which often pay off only in the long term.
By implementing innovative concepts ConMoto supports machine and plant manufacturers in achieving their strategic and operational goals. In our projects we reduce manufacturing costs by up to 35 percent by consistently applying design-to-cost and modularization approaches. At the same time agile order processing and intelligent planning/control achieve reductions in delivery times of up to 40 percent. Cost-cutting programs for direct and indirect areas, consistent follow-up management and sophisticated make-or-buy concepts accompany these measures. Smart solutions in the service and after-sales sectors generate additional revenue and improve margins.
In cooperation with our clients, we use strategic tools for preventive risk management and flexibility concepts – to avoid workload fluctuations and misinvestments. In addition, we focus on the strategic issues of digitization in mechanical engineering by including automated logistics, machine learning or the development of campus networks.
In machinery and plant engineering German companies set worldwide performance standards. ConMoto helps them to improve continuously and stay ahead of the competition.
The market leader in machinery and plant engineering with more than 50 percent world market share in the premium segment decided to put its performance to the test. They found that the B segment grew significantly faster and therefore, had a much higher market potential than the A segment, in which the company has successfully defended its market leadership in the high-end sector for decades. The B-segment with slightly lower precision requirements was dominated by Asian companies, who offered their machines 25 percent cheaper.
Thus, the task presented to ConMoto was clearly defined: at least 25 percent lower product costs than before, while maintaining the “German engineering” for which the company is famous for decades now. In a mixed team of R&D managers, production specialists, controlling and sales department members of the client together with experienced ConMoto consultants, this target was achieved and even exceeded in five months: the production costs for two new machines fell by 30 and 39 percent respectively.
The basis was a combination of design-to-cost and procurement excellence: on the one hand, our approach gave enough freedom to rethink things. And on the other hand, it established a very close-knit success controlling for the best possible efficiency and effectiveness. A completely new design approach enabled costs to be reduced by an additional nine percent in the B segment without sacrificing quality.