BAE Systems - Identifying cost savings of 30-50%

The Platform Solutions division of BAE Systems designs and builds avionics products for civil and military platforms. These programmes can take 10 years from initial concept to entry into service. As many of the components are bespoke, cost- and quote-based estimating models do not provide robust evidence to inform future procurement and customer cost estimates.

Using our product cost optimisation capability and experience from the automotive sector, PA calculated the best practice costs for a range of electronic, electro-mechanical and mechanical parts. Our team of experienced product cost engineers used PA’s own database tool and manufacturing assessment to analyse and calculate the costs of the parts, including realistic overheads and profit.

PA’s work helped BAE Systems and their suppliers agree realistic and competitive cost targets while recognising suppliers’ need for sustainable prices. The project identified potential component cost savings of 30-50%.

To find out more about our defence expertise, including supply chain strategy and cost reduction, please contact us now.