R&D expense reduction was 15-20%.
The new-product-development process involves multiple challenges for engineering and machinery companies. Organizations that utilize lean methods can address critical issues of waste and increase the effectiveness and efficiency of engineering.
BCG is helping companies overcome the challenges often associated with new-product development, such as long development cycles, overengineered products, costly last-minute changes, and unclear project management goals. BCG provides companies with a proven framework for lean engineering dimensions, benchmarking data from 100 companies, and a comprehensive set of tools related to product, processes, leadership and enablement. BCG’s Lean Engineering Framework can help companies gain critical lean advantages such as:
By applying the levers of the Lean Engineering Framework, companies have achieved a 15-20% R&D expense reduction and a 5-8% material cost reduction. Besides cost and productivity improvements, companies have realized significant benefits through lean engineering, including shorter lead times, higher agility, and projects completed on time and on budget.