The joy brought by the success of the prototype did not last long. A more realistic and ruthless problem was placed in front of the project team—cost accounting.

When Sun Mei, the production department accountant, placed the preliminary cost estimate on Liu Li's desk, the numbers on it made everyone's hearts sink.

“Team Leader Liu, based on our current design and technology, the material and processing costs for one threshing machine are already close to 1.5 times the market price of similar products in the south. The situation is similar for water pumps.” Sun Mei’s tone was helpless. “This does not even include the amortization of R&D investment and subsequent marketing expenses.”

The atmosphere in the conference room, which had just become lively due to the successful prototype, instantly plummeted to freezing point.

"One and a half times?!" Zhao Qiang almost jumped up. "At this price, no one would buy it in the market! No matter how good our quality is, ordinary people still have to think twice before buying!"

The root cause of the problem was quickly identified. The Hongxing factory was accustomed to the standards and materials used for large industrial parts. Although Liu Li had already made optimizations in the design, many aspects still unconsciously followed the mindset of "military quality".

The shell of the thresher is made of standard grade gray cast iron, which is sturdy, but the cost is much higher than that of the recycled scrap iron used by small factories in the south.

• Transmission gears, even if they are modified from old stock parts, have material costs and machining precision that far exceed the requirements.

While the water pump boasts an excellent sealing structure, the time and cost of meticulously machining the valve seat and high-precision piston rod are extremely high.

Even for a simple fastening bolt, Hongxing Factory used standard parts, while small factories in the south might use non-standard or substandard parts.

"We must cut costs by at least a third, or even half, to be competitive in the market!" Liu Li stared at the cost sheet, her tone resolute. This wasn't a compromise, but a necessity for survival.

A battle centered on "cost" has begun. The project team's goal is no longer "best," but rather, while being "good enough," to pursue "the most economical" results.

Innovation using "traditional methods" emerges from dire circumstances.

Liu Li once again demonstrated her flexible thinking, combining theory with practice. She gathered Fu Jingchen, several experienced master craftsmen, and accountants to begin a "cost diagnosis" of each part.

"Could we use a lower grade of steel instead of HT200 for the casing? Or... could we mix in some recycled iron made from remelted scrap steel?" Liu Li proposed a bold idea.

An experienced foundry master pondered for a moment and said, "The strength might be slightly affected, but it should be sufficient for use in a threshing machine. It's just that the casting fluidity will be poor, and the scrap rate might be a bit higher."

“Then optimize the casting system and control the scrap rate! This part of the cost must be reduced!” Liu Li made the decision.

“Transmission gears,” Fu Jingchen pushed up his glasses, “have we over-designed them? According to the stress calculations, the module could be reduced by one size, and the tooth width could also be appropriately reduced. As for the materials… perhaps we could replace some of the alloy steel with lower-cost ductile iron?”

"Are the ductile iron gears tough enough? What if they break after a short time?" some people questioned.

“We can compensate by optimizing the tooth profile and heat treatment process.” Fu Jingchen quickly calculated on paper. “We can conduct several sets of comparative experiments.”

Regarding the expensive sealing structure of the water pump, Liu Li proposed a more ingenious idea: "Could we transform the 'precision grinding' process, which relies on the skills of highly skilled fitters, into a standard procedure that ordinary workers can quickly operate by designing a simple, specialized grinding fixture? This could significantly reduce labor costs!"

Master Wang Jianguo took the initiative to participate in the discussion this time. He gestured with the pump body valve seat a few times and nodded: "Make a guide fixture to fix the grinding paste and grinding rod, and let the machine turn it. It's faster than manual and not much worse. I'll figure out this tooling."

Even details like bolts were scrutinized. The purchasing department was tasked with finding suppliers of lower-priced non-standard parts, or considering using the then-emerging, lower-priced standard parts from township enterprises.

Every idea comes with risks and uncertainties. Using lower-grade cast iron may increase scrap, simplifying gear structures may affect lifespan, and the effectiveness of new sealing fixtures remains to be verified... but there is no time to hesitate.

Liu Li overruled everyone's objections: "Let's first implement the new cost-reduction plan and make ten prototypes for each! Conduct enhanced lifespan tests! Let the test data speak for itself! If the new plan's products can achieve 80% of the expected lifespan, and the cost can be reduced to the target range, then we've succeeded!"

The workshop bustled with activity once again. This time, the goal was no longer ultimate performance, but the optimal solution within the constraints of cost. The veteran craftsmen abandoned their obsession with "top-grade materials" and began to ponder how to achieve similar results using more "down-to-earth" methods; while the young technicians followed Fu Jingchen, repeatedly calculating the mechanical properties behind every dimensional change.

The predicament of cost and materials, like a tight rein, has forced the people of Hongxing Factory to unleash unprecedented creativity and pragmatism. They are learning how to survive under the harsh rules of the market. The outcome of this race against cost will directly determine the success or failure of Hongxing Factory's transformation.