CYIENT © 2016 CONFIDENTIAL05/01/2023

Value engineering

Assessing costs, quality and performancewith functional analysis

CYIENT © 2016 CONFIDENTIAL05/01/2023

New and emerging markets, supply chain issues, competition, variable regional healthcare systems necessitate finding new value to maintain market relevance.

Value increases either by reducing cost or improving the nature of function. OEMs are under pressure to improve quality and function without increasing cost.

Medtech market pressures leadto search for new value

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CYIENT © 2016 CONFIDENTIAL05/01/2023

Value engineering is a function-oriented, systematic team approach to analyse and improve products, facility designs, systems and services.

An international standard for effectively solving problems and reducing costs while enhancing performance and quality requirements.

Uses a highly-structured methodology that examines and improves all aspects of design, function, quality and performance requirements.

Value Method: An international standard

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CYIENT © 2016 CONFIDENTIAL05/01/20234

CYIENT © 2016 CONFIDENTIAL05/01/2023

Should be recognized as an imperative future investment for growing a product and gaining industry leadership.

Not a suggestion or routine program review. Also, not a typical cost reduction project that cheapens products or cut corners.

Without recognizing need, OEMs run risk of losing market relevance to competition.

Risks of not using value engineering

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CYIENT © 2016 CONFIDENTIAL05/01/2023

External partners provide:• Fresh perspective to question long-held internal beliefs and drive

innovation• Global sourcing and supply network and experienced engineers

for capitalizing on low-cost country advantages• Eliminate lost productivity by keeping OEM team focused on

primary responsibilitiesCyient’s range of experience in value engineering programs and variable staffing structure allows for a broad variety of projects, resulting in new cost savings and product optimization in collaborative effort with low risk.

Engaging a Value Engineering Partner

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CYIENT © 2016 CONFIDENTIAL05/01/2023

For each project, Cyient targets 15-25% cost reductions

Multidisciplinary standard procedures, regulatory and quality processes, and other frameworks based on past medtech OEM projects

In-house manufacturing and sourcing capabilities and global services and supply network for capitalizing on low-cost country advantages

Why partner with Cyient?

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CYIENT © 2016 CONFIDENTIAL05/01/2023

• Whitepaper: Value Engineering: Assessing Costs, Quality, and performance

• Brochure: Harnessing the Power of Value Engineering• About Cyient’s Manufacturing Engineering Competency  

• Blog: Finding New Product Value in Medical Devices Through Functional Analysis

• Associated reading• Should-cost Analysis • Vendor management • Benchmarking• Product localization• Product engineering

Additional Resources

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