RightCost™ Case Study

24579 - OPTIS case studies - Machinery [RightCost]_375pxAfter acquiring a number of competitor valve manufacturers, Emerson Process Management was keen to secure the best part cost for key components that make up its Valve Automation offer. OPTIS expertise delivered a RightCost™ project to identify a ‘should cost’ and potential cycle times of the product.

With its comprehensive product scope, Valve Automation, Inc. – the division within Emerson Process Management which consolidates a vast array of valve automation products and services – is a world leader in pneumatic, hydraulic, electric, and gas-hydraulic valve automation products and services. The division provides valve automation products and services to complement Emerson’s extensive capabilities in automation solutions for process industries.

Having completed a series of acquisitions of competitive valve manufacturers, Emerson was looking to make a number of design changes to consolidate products. These design changes were the catalyst to open the bidding process to several machining houses.

Emerson wanted the strategic advantage of establishing a ‘should cost’ and potential cycle times of the product, to include an understanding of any potential capital investments that a supplier would be required to make in order to meet demand.

Utilizing the RightCost™ methodology, OPTIS expertise was used to investigate and establish a baseline cost to process the pinion and housing of the valve actuator based on information provided by Emerson. The baseline included machining information and other operations in their process.

OPTIS expertise was used to investigate several alternatives for process optimization above and beyond the baseline, including product groupings and alternative machining options. The process included a review of potential design changes that would help reduce the overall product cost by assisting the manufacturing process and provided supporting data to build a business case for each proposed change.