Product Cost Optimization in Mechanical Engineering 🌐 KBC
Consulting Services
Industries
Careers

People are at the heart of what we do

Tractor on a metal platform in a lab with purple and green holographic laser scans; product cost optimization by KBC.

Cost Optimization | Industry & Mechanical Engineering

Product Cost Optimization in Mechanical Engineering: Disruptive Approach Unlocks €9,000 in Potential per Large Machine 

A leading global manufacturer of premium agricultural machinery faced a strategic challenge: Its escalating cost structure threatened to undermine its long-term competitiveness, without compromising the brand’s commitment to quality and premium standards. KBC applied its proven approach to disruptively reducing manufacturing costs and, in collaboration with the company, adapted it to the specific requirements of the sector. The result: over 300 new ideas, management-approved savings of €1,000 per machine, and validated potential for an additional €8,000—all without compromising the brand’s premium standards. 

Product Cost Optimization by the Numbers

generated new ideas
Cost savings per unit  
additional potential per unit 

The Customer

Leading international manufacturer of agricultural machinery

The client is one of the world’s leading premium manufacturers of agricultural machinery, with several thousand employees and an international presence. The company is known for its technological innovation, superior product quality, and exceptionally high customer satisfaction. It deliberately positions itself in the industry’s high-end price segment. 

Against the backdrop of increasing global competition and the growing complexity of agricultural value chains, a key question arose: How can long-term competitiveness in terms of production costs be strengthened without jeopardizing the company’s premium positioning? Previous initiatives had focused primarily on incremental measures within individual departments. A fundamentally new, disruptive approach was needed to sustainably improve the product cost structure.

The Project

Product Cost Optimization Using Disruptive Methodology

The goal of the project was to substantially reduce manufacturing costs in order to ensure that margin targets were met. At the same time, the project aimed to explore new avenues for solutions and empower the organization to achieve these goals independently on a sustainable basis. 

To this end, KBC introduced its own methodology , “The BOLD Way” —a scientifically grounded approach that systematically overcomes mental barriers and opens up disruptive solution spaces for all kinds of complex challenges. For this project, we specifically adapted the methodology to address the company’s challenges in optimizing its product costs. 

The integrated approach was divided into three phases. During the diagnostic phase, we conducted stakeholder interviews and established a transparent cost baseline, including a data cube as a central information platform. During the disruption phase, we organized four cross-functional ideation workshops. This resulted in over 300 new approaches, which were subsequently validated for feasibility through rapid prototyping. In the transformation phase, we strengthened cross-functional collaboration, rolled out the disruptive methodology to more than 50 employees, and established the data cube as a permanent cost transparency platform.  

Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A bald man wearing square dark glasses, smiling warmly at the camera. He is wearing a navy blue jacket over a white shirt, along with a brown leather belt and a silver wristwatch; both hands are in his pants pockets.
Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A bald man wearing square dark glasses, smiling warmly at the camera. He is wearing a navy blue jacket over a white shirt, along with a brown leather belt and a silver wristwatch; both hands are in his pants pockets.

This Is How We View Product Cost Optimization for Agricultural Technology

True product cost optimization does not come from scrutinizing individual line items, but from breaking down mental barriers. When an organization is willing to question its own “sacred cows,” it unlocks potential that traditional methods would never have brought to light.

Martin Betz, Partner at KBC

The result

Measurable Impact on Three Levels Through Product Cost Optimization

The project delivered results on three levels. At the operational level, validated and management-approved measures were developed that demonstrate a reduction in manufacturing costs of €1,000 per unit across all product lines. Feasibility was assessed through targeted, moderate efforts before resources were allocated for implementation. 

In addition, we identified further potential savings of €8,000 per unit through structural design changes. These approaches were validated and prioritized for implementation—without compromising our commitment to premium quality. 

At the structural level, the Data Cube provides lasting cost transparency across all product lines. More than 50 employees have been trained in disruptive methods, thereby ensuring that the company can continue to optimize costs independently. This expertise is firmly embedded and not project-dependent. 

Other Projects That Make a Difference

Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A man with a shaved head and distinctive dark rectangular glasses, smiling warmly at the camera. He is wearing a dark blue suit with a matching jacket and pants over a light blue shirt without a tie, a cognac-colored leather belt, and a silver wristwatch on his right wrist; both hands are in his pants pockets, and he has an upright and confident posture.
Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A man with a shaved head and distinctive dark rectangular glasses, smiling warmly at the camera. He is wearing a dark blue suit with a matching jacket and pants over a light blue shirt without a tie, a cognac-colored leather belt, and a silver wristwatch on his right wrist; both hands are in his pants pockets, and he has an upright and confident posture.
Martin Betz
Partner

Facing a similar challenge? Talk to us

Whether you need support with product cost optimization, cross-functionaltransformation, orproduction optimization: In a brief discussion, we’ll determine which steps make sense and how KBC— an international boutique consulting firm based in Munich —can help you move forward. 

Discuss your project