Luma-Hub | Lighting products, development and material solutions

Cost reduction and optimization

Review the service and its applications. Scope, deliverables and fees are agreed following discussion.

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Product development / Technical improvement and cost reduction
Technical improvement and cost reduction

Cost reduction and optimization

Make the trade-offs and evidence behind every cost reduction visible.

Professional service · Acceptance against agreed deliverables
Luminaire teardown and cost analysis: cost breakdown, manufacturing options, assembly optimization and cost structure
Example luminaire teardown and cost analysis
  • 01 Break down cost items
  • 02 Compare manufacturing options
  • 03 Optimize assembly
  • 04 Cost structure
What you receive

Understand the deliverables before choosing how to work together

The following deliverables can be agreed. The project brief defines their depth, quantity and verification responsibilities.

Deliverable / 01

Comparable cost baseline

Separate materials, processing and assembly, yield loss, packaging and agreed logistics.

How this deliverable is checked

Use consistent specifications, quantities, tax and shipping terms, and periods.

Deliverable / 02

Cost reduction opportunities

Record each action, expected effect, investment and implementation condition.

How this deliverable is checked

Show savings assumptions alongside quality and performance constraints.

Deliverable / 03

Improvement validation plan

Define substitute parts, process changes, samples and validation owners.

How this deliverable is checked

Give every action a validation task and pass criteria.

Deliverable / 04

Results tracking log

Record projected savings, test results and production results separately.

How this deliverable is checked

Do not present projected savings as realized procurement or production savings.

Start with your current challenge

This is a useful starting point when

Situation 01 Quotes keep falling, but it is unclear where further cost improvements are possible.
Situation 02 A new product has a target price, but material, processing and assembly costs are not separated.
Situation 03 A substitute material or process looks cheaper, but quality risks and improvement costs are missing from the calculation.
Service scope and effort

Agree the scope and quotation at the depth you need

What you can engage us to do

Define materials, processing and assembly, yield loss, packaging and agreed logistics. Show one-time tooling and improvement costs separately. Pricing depends on the model, data quality, options and tracking period.

Information needed before we begin

Controlled BOM and drawings, purchasing and processing quotes, quantities, labor hours and yield, cost targets and supporting records.

Agreed according to objectives, deliverables and effort
Quoted after the scope is confirmed
Target cost management for new productsCost optimization for existing products

Choose target cost management or optimization of an existing product; pricing depends on the model, data completeness, number of options and tracking period.

We confirm workload, service period and both parties' responsibilities before issuing a formal quotation. Samples, site work and third-party services are listed separately where required.

Process and responsibilities

Every step establishes the basis for the next

01Establish the cost baseline
02Compare targets and opportunities
03Assess improvement and validation costs
04Track results on a comparable basis
Engagement boundaries

Where a full development engagement already covers basic cost control, duplicate work is deducted. Engineering changes and third-party tests are priced separately. No fixed percentage saving is promised in advance.

Agree expectations before we begin

Other questions you may have

How do we determine whether savings have been realized?

Compare the same specifications, purchase volumes, tax and shipping terms, and reporting periods. Show one-time costs and quality effects separately, and distinguish forecasts from realized savings.

How is this service accepted?

Compare specifications, quantities, tax and shipping terms, and periods on the same basis. Separate projected savings, validated savings and production results. Changes must meet the agreed quality and performance requirements.

What happens if the scope changes or information is incomplete?

We first assess how gaps or changes affect deliverables, timing and fees. They are included only after both parties agree; items outside the original scope are recorded separately.

How should information be shared and kept confidential?

Start with a summary of the product type, objectives and issues. Share detailed information after its intended use, confidentiality requirements, access scope and delivery permissions have been agreed.

Start with a brief summary

Tell us about your objectives and current challenges

Describe your current stage, main objectives and desired deliverables, then we can confirm the suitable scope and next step together.

Use the enquiry page to share a project summary. Detailed information can follow once its use and confidentiality requirements are agreed.