Initial Analysis

Initial Analysis - IA

Initial Analysis – the start of a cost reduction team

The mission is often clear: ”Reduce the price/cost of this system”.

The ”onTrack Initial Analysis - IA ©” is the method that takes the cost reduction team on the journey from abstract mission via a clear understanding of the situation to a plan for what strategy, concrete tools and actions to take.

As much of today's product cost is generated at suppliers, the method is developed to handle a customer-supplier interface. If the studied product is internally produced one can omit some steps and include production already from start.

IA is also the first part of a cost reduction project. Depending on the customer need it can be separately delivered if the customer have a good implementation capability.

The purposes are:

	to define, agree and understand current product cost (calculus)
	to give the cross-functional team a common understanding about cost structure and cost drivers
	to generate and cross-functionally evaluate first cost reduction ideas
	to set a cost reduction strategy for the project

The process in short:

	IA preparation (internal - onTrack and customer) -IA process presentation -for business and product clarify: history, current situation and future plans
	IA workshop (cross-functional team including supplier) -detailed product calculation -process mapping -supplier purchasing -design review (brief VA) -brief product benchmark (if relevant products are available at supplier) -idea workshop based upon new cross-functional knowledge -first idea evaluation
	Idea list introduced to implementation organisation
	Documentation and strategy delivered to project