Our team had the unique opportunity to work with the manufacturing engineering team at Hologic, one of the leaders in fluoroscan technology (x-ray), on one of their best selling products. The project focused on the cost reduction of an existing product. Our task: To attain a 20% cost of goods reduction.
A competitor had recently entered the market with a competitive product and a lower price point. The competitive product had nearly identical performance; therefore, Hologic needed to conduct a detailed value engineering project to avoid losing market share.
Goddard began the process by performing an engineering review and FEA analysis to lower material costs wherever possible. We then conducted an in-depth manufacturing process audit to minimize assembly steps and in-process checks. A number of highly skilled labor requirements and redundant process steps were uncovered that yielded significant savings.
Overall, we were able to provide a 50% process and material cost reduction for our client.