Design and development: Cost is designed (accounting for 70% of the valve cost)
The first step in cost control is on the drawing board, not on the production line.
Implement value engineering (VE) and value analysis (VA):
Core idea: Analyze the functions of the product (basic functions, auxiliary functions, unnecessary functions), and seek ways to implement these functions at the lowest cost reliably.
Specific application:
Material optimization: Under the premise of meeting the requirements of pressure, temperature, corrosion and other working conditions, can we use lower cost materials? (For example: valve body wall thickness is precisely calculated through CAE analysis to avoid excessive design; sealing surface material adopts more economical cladding or spray welding process instead of overall forging).
Understanding valve cost is crucial for effective budgeting and resource allocation.
Structural simplification: Reduce the number of parts and optimize their shape to make them easier to process and assemble. For example, integrate multiple parts into a cast or forged part.
Standardization and modular design: Use standard components (e.g., bolts, nuts, washers) and universal modules whenever possible. Establish a product platform that meets diverse customer needs through different module combinations, reducing customized designs to lower design costs and production complexity.
Application of advanced design and simulation technology:
CAD/CAE/CAM: Utilizing Computer-Aided Design (CAD) for 3D modeling, Computer-Aided Engineering (CAE) for stress analysis, fluid dynamics simulation (CFD), and thermodynamic analysis to identify and correct design flaws early, thereby reducing costs in later prototyping and testing phases. Computer-Aided Manufacturing (CAM) is employed to optimize machining paths.
Design for Manufacturing and Assembly (DFMA):
The feasibility of manufacturing and the convenience of assembly should be fully considered in the design stage. For example, parts that are easy to clamp, adjustment links during assembly, and error-proof structures should be designed, so as to reduce the subsequent manufacturing costs greatly.
Procurement and Supply Chain End: Cost control from the source
Strategic sourcing and supplier management:
Supplier screening and evaluation: Establish a strict supplier access and performance evaluation system, focusing on quality, cost, delivery and service (QCDS) capabilities.
Deepen cooperation: establish long-term strategic partnership with core suppliers, through the signing of long-term framework agreements and stable orders, in exchange for more favorable prices and priority supply guarantee.
Centralized procurement and bidding: the decentralized procurement needs are centralized to form a scale advantage, and the best price is obtained through bidding and bidding.
Localized procurement: Under the premise of ensuring quality, we will consider transferring some imported parts to domestic procurement to reduce procurement costs and logistics risks.
Supply chain optimization:
Lean supply chain: reduce inventory, implement JIT (just in time) distribution, require suppliers to directly deliver goods to the production line according to the production beat, reduce inventory capital occupation and warehouse management costs.
Supply chain visualization: Use information system (such as SRM) to track the status of key materials, give early warning of risks, and avoid huge losses caused by production interruption.
Manufacturing: Eliminate all waste
The implementation of lean production is the core means.
Identify and eliminate seven wastes:
Overproduction, inventory, handling, waiting, unnecessary movements, overprocessing, and defect rework. Through value stream mapping (VSM), identify and systematically eliminate these wastes.
Process optimization and technological innovation:
Processing technology: optimize cutting parameters (speed, feed, depth), use efficient tools to improve processing efficiency. Research and adopt more advanced processes, such as replacing grinding with turning, replacing planing with milling, etc.
Furnishing/forging process: improve the quality and life of the mold, improve the pouring and casting system, improve the utilization rate of materials, reduce the defect rate.
Welding and heat treatment: Use automatic welding equipment to ensure quality consistency and improve efficiency. Optimize the heat treatment process curve to save energy.
Automation and intelligent upgrading:
The introduction of industrial robots or specialized automation equipment in processes with high repeatability, heavy labor intensity, or strict quality requirements (such as welding, spraying, precision machining, assembly and inspection) reduces reliance on human labor and improves production efficiency and consistency. This is a long-term investment that requires weighing the input against the output.
Total Quality Management (TQM):
Quality delivers the greatest cost savings: By implementing the “get it right on the first try” philosophy, reducing waste, rework, and after-sales maintenance costs yields benefits far exceeding inspection investments. Applying methods like SPC (Statistical Process Control) to monitor production processes helps prevent defects from occurring.
Energy and Consumables Management:
Carry out energy-saving transformation (such as using energy-saving motors, waste heat recovery of air compressors). Standardize the management of cutting tools, lubricating oil, grinding wheels and other auxiliary materials to reduce consumption.
Management and operation: Improve system efficiency
Implementing information management system:
Introduce ERP (enterprise resource planning), MES (manufacturing execution system), PLM (product life cycle management) and other systems to realize the seamless flow and sharing of sales, design, procurement, production, inventory and financial data, break the department wall, reduce communication and internal cost, and improve the overall operation efficiency.
Lean business process:
Optimize the order processing, production planning, logistics and delivery process, shorten the delivery cycle, and accelerate the capital turnover.
Total Workforce Cost Culture:
Establish cost assessment and incentive mechanism to encourage all employees to put forward reasonable suggestions (“Golden idea” activity), so that every employee becomes the subject of cost control. Those who produce significant benefits will be given heavy rewards.
After-sales service and life cycle cost
Improve product reliability:
A valve with high reliability reduces the cost of downtime and replacement, which is a huge savings for customers. This in turn enhances the competitiveness and brand value of the product, allowing for a certain premium space.
Remote monitoring and predictive maintenance:
For high-end valves, sensors can be integrated to enable condition monitoring and predictive maintenance through the Internet of Things (IoT) technology, helping customers avoid unplanned downtime incidents, which in itself is a value-added service that can create new profit points.
Summary: The logical framework of scientific cost reduction
| dimension | core strategy | Key initiatives |
| Design and development | Value engineering, source control | Function analysis, material and structure optimization, standardization, DFMA, CAE simulation |
| Procuring supply chains | Strategic cooperation, synergistic cost reduction | Supplier management, centralized purchasing, localization, lean supply chain (JIT) |
| production-manufacturing | Lean production, eliminate waste | Value stream analysis, process optimization, automation, TQM, energy saving and consumption reduction |
| Management and operations | Process optimization, digital driven | ERP/MES systems, business process reengineering, total cost culture |
| Services and products | Whole life cycle perspective | Improved reliability and predictive maintenance services |
The most crucial principle: Scientific cost reduction must never come at the expense of product quality, performance, safety, or reputation. Any short-term savings achieved through such compromises will ultimately be repaid in kind – through customer complaints, lost orders, brand damage, or even safety incidents. True scientific cost reduction is a continuous journey of improvement focused on value creation and efficiency enhancement.
