Cost optimisation of Automatic Teller Machine (ATM) product

Cost comparison analysis on ATMs leads to cost reduction of 35-40%.

Challenge

Under cost pressure from competitors, our client wanted to understand if the competitor machines were cheaper to manufacture and, if so, why?

 

Approach

  • We undertook a ‘tear down analysis’ of the competitor product and compared it to our clients and showed that the competitor’s machines were actually more expensive
  • We identified a number of design changes to reduce the cost of our client’s product

 

Benefits

  • We identified manufacturing cost savings in our client’s current product of 35-40%
  • We highlighted that design of a new machine could save as much as 70% on the current machines
  • Our client was better informed of its competitors’ cost base and selling margins

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