How to “iron” product costs in the white goods business

Innovations in the white goods business are rare and unexpected, but the market for household appliances is fiercely competitive and prices are constantly falling. Each new product needs to deliver profitability from the beginning.

In our case, you will learn how we applied our Design-to-Cost approach to help our client integrate a new ironing station into an existing product portfolio to increase performance.

A pressing job

How can a product that has been around for so long and has but one singular purpose – to smooth fabrics – offer new features? How can a product with a simple function provide more value to the customer while having lower costs?

Our customer wanted to add a new product to their product portfolio to better compete with competitors. To fulfill that requirement, the new product design had to undercut the market price and be easier to use.

We have introduced a new, holistic approach improving product profitability

The greatest value-add came from a “fresh-eye approach” as part of our holistic Design-to-Cost process in developing new technical solutions and manufacturing principles. In addition to the development of new technical solutions, we were also able to improve product marketing by clearly presenting its cost benefits.

Using our holistic approach, new concepts were developed and design alternatives along the supply chain were compared and optimized

By focusing on profitability, features and customer value, the cross-functional team was able to achieve cost savings in the high single digits. The new product was able to fill the existing gap in the product portfolio without compromising on performance to meet the target.

Cost reduction ideas for the new product – Quick Wins could also be transferred to the existing product range

Design-to-Cost with a “fresh-eye look” from the outside has been used to improve the profitability of even established products

The combination of different concept elements in our holistic approach generates additional benefits even in difficult situations. Our project experience shows that top performing companies have integrated a design-to-cost approach into their standard R&D process.

Product Costing
Our Specialists

Working with the most qualified TSETINIS-EFESO Consultants is key to your success.

Speak with an expert in your industry who can help you move your company toward your specific goals. We implement our expertise in a very specific and targeted way and tailor the choice of methods to your individual requirements. In this way, we can ensure your long-term success.

Martin Kruschel


Materials Management
Product Profitability Programs
Restructuring & Organizational

+49 151 46700477


Sönke Johannsen

Senior Principal

Product Profitability
R&D Excellence
Materials Management

+49 151 62409501


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