A product cost down can deliver substantial cost savings, giving you a competitive edge. We helped a client achieve a sustainable cost reduction of 46% for a complex multiplex PCR system, exceeding the original savings target.
How can you make a complex PCR multiplexing system more cost-efficient without compromising performance, quality, or user experience? One of our clients faced exactly this challenge. The target was ambitious: a 44% cost reduction, with the assay chemistry, product performance, and external dimensions unchanged.
Within just 3.5 months, my cross-functional team of systems, mechanical, and electrical engineering experts, developed a concept with specific cost-saving measures that not only met but exceeded the cost-reduction goal.
The methodology we used combined technical depth with creative thinking in a structured three-phase approach:
- Initial assessment
- Concept creation
- Consolidation of measures and bill of materials (BOM) update
Phase I: Initial assessment – broadening the perspective
The project began with a simple but essential question: Where do the main costs arise, and why? We initially considered the manufacturing and procurement processes, but these were not the primary focus of the project. Since the starting point was an advanced, on-market system, the challenge was not to redesign from scratch but to find innovative ways to rethink its architecture. Instead of focusing solely on the existing system layout, our team assessed the device based on its functional architecture. In a joint workshop with the client, we analyzed each system function to reveal the main cost drivers. This shift in perspective encouraged out-of-the-box thinking and quickly led to a consolidated list of initial cost-saving ideas. An early semi-quantitative assessment of cost-saving potential, implementation efforts, and associated risks enabled us to rate and prioritize the ideas.
Phase II: Concept creation – turning ideas into viable solutions
Our team discussed each concept in detail in close collaboration with the client. The responsible technical lead for each engineering discipline developed an implementation concept for each idea, in alignment with the product’s requirements and project constraints. This deep dive into the individual system functions enabled us to come up with additional ideas and further enhance the cost-saving measures in an iterative manner. We consolidated a pre-selection of measures into a holistic system concept to evaluate the overall impact, eliminating competitive or redundant ideas. Throughout this process, we also ensured that the user experience was maintained as requested by the client.
Phase III: Consolidation of measures and BOM update – from individual measures to holistic results
In the final phase of the project, we reviewed the pre-selected measures with the client and identified a final, validated set of cost-reduction actions. A new BOM was created for the next-generation product.
So what was the result?
- We achieved a 46% cost reduction for a typical module setup, exceeding the original target of 44%.
- Remarkably, 96% of the estimated cost savings were rated as low risk in terms of impact on assay chemistry and product functionality.
- We also proposed additional long-term concepts, enabling up to 57% overall cost savings for future product generations.
Why partner with HSE?
The success of this project illustrates our unique value proposition:
- Fresh external perspective, uncovering cost-saving opportunities that exceed internal assumptions.
- Structured methodology ensuring traceable, data-driven decisions.
- Early risk mitigation with realistic cost estimations and evaluation of the target achievement.
- Strong technical expertise across engineering disciplines to find the right solution for each application.
- Application knowledge to understand the needs of the product and assess potential impact on the assay.
By combining a structured process with an open mindset, we helped our client achieve significant cost savings without compromising on the core functions of the product. The project demonstrates how rethinking system architecture from a functional perspective can unlock remarkable value, even in mature, high-performance devices.
How can our cost-down assessment service help you?
If you’d like to identify costs and reduce unnecessary expenses in product development, discover more about our Cost-Down Assessment Service. This can help you achieve long-term cost savings without impacting performance or quality.
Sonja Weidenmüller
Dr. Sonja Weidenmüller, Project Manager at HSE•AG, is an expert in managing interdisciplinary projects that bring together science, engineering, and innovation in the field of medical technology.
Before joining HSE•AG, Sonja spent several years at DIALUNOX, a QIAGEN company, where she managed projects focused on point-of-need diagnostic tools and worked as a system engineer for lateral flow readers. Earlier in her career, she was a scientific associate at the Fraunhofer Institute for Microelectronic Circuits and Systems IMS, specializing in process development and biosensor technologies.
Sonja holds a PhD in Engineering from the University of Duisburg-Essen and a Master’s degree in Medical Physics from the University of Düsseldorf.