Cost Reduction Engineer Jobs (NOW HIRING)

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

1) 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.

2) 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.

3) 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.

4) 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.

5) 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.

6) 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.