Case study · Smart home brand

Taking 38% out of a smart thermostat BOM

A value-engineering program on a shipping product: teardown, benchmarking against three competitors and a redesigned architecture.

Client
Smart home brand
Industry
Consumer Electronics
Duration
10 weeks
Team
5 people
Year
2023
1234ABCTHERMOSTAT, WALLDWG RO-1204REV CSCALE 1:1SHEET 1 / 121.5HEAT · TARGET 22.0Ø84.027.0WALL
-38%
Bill of materials cost
-41%
Assembly time
0
Customer-facing feature regressions

01 · The challenge

A successful product had become a margin problem. Component prices had risen, the board carried two generations of workarounds, and the enclosure took eleven screws to assemble.

02 · What we did

  1. 01

    Bought, tore down and benchmarked the client’s product against three competitors, with a should-cost model for each.

  2. 02

    Consolidated two boards into one, moved to a single wireless SoC and removed a separate display controller.

  3. 03

    Redesigned the enclosure to snap-fit with two screws, keeping the premium feel the brand is known for.

  4. 04

    Ran a full regression test campaign so nothing customers relied on changed.

03 · The outcome

The redesigned product cut BOM cost by 38% and assembly time by 41%, restoring the margin needed to keep the product line in retail.

“We expected a list of ideas. We got a finished product.”
SVP of Product · Smart home brand

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