Cost Engineering on a Power Adapter

BACKGROUND

The power adapter that the customer is using has been in use for years and the quality is very stable. However, as the competition in the market is getting tougher and the profit margins are getting smaller, the customer is having difficulty with this product, either abandoning the project or trying to cut costs.

CHALLENGES

• Assuming that the appearance of the product is similar, the function is the same, and the quality remains the same. How can we reduce the cost of the products?

SOLUTION

We disassembled the sample provided by the customer. The design quality of the PCBA is really solid, but it was developed many years ago. We found that we can use new technologies and advanced electronic components to achieve the goal of cost reduction.

Therefore, we referred to the quality standards of customers’ samples and created three versions of samples with high, medium, and low levels for customers’ evaluation and selection. With the lowest version, costs can be reduced by 40%.

BENEFITS

The product cost has decreased significantly and it has regained its competitiveness in the market.