A leading global aero engine OEM partnered with ALTEN to tackle the critical challenge of reducing unit manufacturing costs without compromising on safety, performance, or regulatory standards. The client was looking for more than just engineering support; they needed a strategic partner with deep technical expertise, a proactive mindset, and the agility to navigate complex engine designs. ALTEN stepped in with a structured, design-led, and cross-functional approach delivering not just cost savings, but faster execution cycles and stronger collaboration across engineering, procurement, and manufacturing teams.

In the high-stakes world of aero engine manufacturing, reducing unit costs is a complex balancing act. Engine components are highly engineered, built with expensive materials, and manufactured under tight tolerances and stringent quality standards. Even small inefficiencies can lead to significant cost overruns when scaled across production.

Challenge:

• High Design Complexity: Engine components are intricate, requiring precise engineering and adherence to tight tolerances.
• Expensive Materials & Processes: Specialized materials and manufacturing methods significantly increase production costs.
• Sustainability Without Compromise: Cost reduction must be achieved without affecting safety, performance, or compliance.
• Big Impact from Small Savings: Even minor reductions in unit cost can lead to substantial savings at scale.
• Global Market Pressure: OEMs face growing demands to deliver both high performance and cost efficiency.
• Need for Engineering-Led Optimization: Traditional approaches are no longer enough—strategic, design-driven solutions are essential. 

Solutions: 

1. Structured 3-Phase Support
   • Scoping: Technical and commercial assessment of cost reduction ideas to evaluate feasibility and risks
   • Pre-Launch: Planning execution — resource allocation, activity mapping, and documentation
   • Delivery: Implementation through design changes, documentation, and final reviews
2. Proactive Design Reviews: 
   • Identify additional optimization opportunities beyond client suggestions
   • Recommend design tweaks, material substitutions, process improvements, or alternate sourcing
3. Agile Execution Framework: 
   • Short, iterative sprints with cross-functional teams (engineering, procurement, manufacturing, cost)
4. Business Case Development:
   • Estimate “Should Cost” for each proposal
   • Provide ROI-driven recommendations to support customer decision-making

Benefits:

• 250+ cost optimization ideas executed over 3+ years across Civil Large Engine components
• Faster design iterations and implementation through agile, sprint-based execution
• Enhanced cross-functional collaboration across engineering, procurement, and finance teams
• Additional value-added insights with design suggestions and technical justifications beyond initial scope
• Significant cost savings proposed for critical components like Fan OGV, backed by technical analysis and should-cost estimates
• Dedicated ALTEN resource deployed for Transmission components based on proven delivery excellence