Cost Reduction Engineer (CRE) - Job Description Position Summary The Cost Reduction Engineer (CRE) is responsible for identifying, developing, and implementing material, labor, and warranty cost reduction initiatives across product lines - without compromising safety, performance, durability, or compliance. This role drives measurable savings through value engineering, design-to-cost, supplier collaboration, and manufacturing process improvements, partnering closely with Engineering, Sourcing, Operations, Quality, and Field Service. This position is expected to be comfortable moving between analysis and hands on, shop-floor learning, supplier engagement, and CAD-driven design changes that result in released drawings/BOM updates Key Objectives / Outcomes
- Deliver validated cost savings through approved design, supplier, and process changes.
- Build and manage a pipeline of cost-reduction projects (ideation → analysis → implementation → sustainment).
- Reduce warranty exposure by eliminating failure modes with design/process/supplier corrective actions.
- Improve manufacturability and assembly efficiency using Lean / Kaizen / Toyota Production System principles.
Essential Duties & Responsibilities
- Cost Reduction & Value Engineering (Primary)
- Identify high-impact cost opportunities via teardown reviews, should-cost modeling, BOM analysis, labor studies, and supplier benchmarking.
- Lead design-to-cost initiatives on mechanical, thermal, and electro-mechanical assemblies (e.g., coils, sheet metal, panels, harnesses, brackets, subassemblies).
- Execute DFM/DFA improvements: part count reduction, tolerance rationalization, commonization, modularization, alternate materials/processes, and packaging improvements.
- Quantify and present business cases (one-time vs recurring savings; tooling ROI; PPV; labor savings; warranty reductions) using strong financial and data discipline.
- CAD Design & Release (Hands-On Execution)
- Create or modify 3D models, 2D drawings, and assemblies; maintain drawing standards and revision discipline.
- Develop production-ready documentation packages (drawings, GD&T where needed, notes, specs) and support release through engineering change processes.
- Preferred capability using Autodesk toolchain: Inventor / AutoCAD / Vault.
- Cross-Functional Leadership & Kaizen
- Facilitate Kaizen / Lean events and implement improvements that reduce waste, scrap, rework, and cycle time.
- Collaborate with Operations and Manufacturing Engineering online efficiency, quality escapes, and repeatable standard work.
- Influence effectively across functions; lead initiatives even without direct authority.
- Supplier Collaboration & Sourcing Support
- Partner with Sourcing to evaluate alternate suppliers, negotiate technical requirements, and implement approved substitutions.
- Support supplier technical reviews: manufacturability, process capability, PPAP/FAI readiness as applicable, and quality plans.
- Drive cost-down with suppliers while protecting quality and delivery performance.
- Risk & Reliability / FMEA Leadership
- Lead DFMEA activities, participate in PFMEA’s to identify cost-reduction risks and proactively mitigate failure modes.
- Ensure changes meet reliability expectations (validation plans, fit/function checks, performance testing as required).
- Integrate lessons learned from field performance and warranty data into project prioritization.
- Reporting & Communication
- Build clear executive-ready summaries: savings realized, savings in-flight, project health, risk/mitigation, and next decisions.
- Maintain structured documentation and project tracking for audits and sustainment.
Required Qualifications
- Bachelor’s degree in Engineering (Mechanical preferred; Manufacturing/Industrial/Electrical considered) or equivalent experience with demonstrated technical depth.
- 5+ years engineering experience in a manufacturing environment; HVAC industry strongly preferred or adjacent experience (thermal systems, electromechanical products).
- Demonstrated experience with components/processes such as:
- Heat exchanger / coil designs and manufacturing considerations
- Sheet metal fabrication and assemblies
- Electrical panel layout considerations, and/or harness routing/assembly realities
- Ability to perform cost analysis and translate findings into actionable engineering changes.
- Strong CAD capability; able to produce and revise drawings and models to release-quality standards.
- Proficiency with Microsoft Office (Excel-heavy work expected for costing, analysis, tracking).
Preferred Qualifications (Highly Desired)
- Experience leading continuous improvement using Lean / Toyota Production System / Kaizen methodologies; Six Sigma experience/certification a plus.
- Track record of leading teams through FMEA and design/process risk reviews.
- Familiarity with product lifecycle change control disciplines (ECO/ECN, revision control, structured release processes).
- Experience supporting sourcing activities: supplier selection, cost-down negotiations, technical RFQs, and supplier process understanding.
- Working knowledge of manufacturing process capability, measurement discipline, and quality tools (8D, root cause analysis, control plans).
Core Competencies / Behaviors
- Results-driven: relentlessly closes actions and delivers measurable savings.
- Analytical + practical: can build a model and validate it on the floor with real parts and operators.
- Team player with independent execution: collaborates well, but thrives owning deliverables end-to-end.
- Structured problem solving: uses data, root cause discipline, and clear documentation.
- Communication strength: can explain technical tradeoffs and financial impact to mixed audiences.
Success Metrics (Examples)
- Annualized cost savings implemented ($) and verified savings tracking quality.
- Cost-out per project vs target; implementation cycle time from idea → release → production cut-in.
- Warranty reduction impact (claims reduction, repeat failure mode elimination) where applicable.
- Manufacturing efficiency gains (scrap, rework, touch time, cycle time).
Working Conditions / Travel
- Office + manufacturing environment with regular shop-floor engagement.
- Up to 5-10% Travel (Supplier/Customer Sites)
- Passport required (Travel to Canada/Mexico)
Reporting Relationship (Typical) Reports to Engineering leadership; works closely with Product Engineering / R&D Engineering, Sourcing, Operations, Quality, and Field Service on cost/warranty reduction initiatives.
8:00AM-5:00PM Mon-Fri