In fact, development costs are generally taken for granted, and only slightly challenged, mainly due to a perceived high level of complexity and a lack of methods & tools to address these items.
Nevertheless, structured approaches focusingon Non-Recurring Expenses reduction have shown very good results. IAC Partners developed and successfullyapplied NRE optimization methods & tools that prove to bring 30 to 50% savings.
Best-in-class performers apply a 3-lever optimization approach to achieve 30 to 50% planning and cost reduction.
The 3 optimization levers are composed in a set of “straight-to-the-point” sub-levers to facilitate their implementation on any project.
A structured approach focusing on NRE optimization is a powerful element to reverse the paradigm of failed recurring cost reduction initiatives due to insufficient return on investment, as well as to lower the breakeven point of major engineering-intensive projects.