NMHG Drives Down Product Costs with aPriori
| NACCO Materials Handling Group (NMHG), headquartered in Cleveland, Ohio, designs, engineers, manufactures, sells and services a comprehensive line of lift trucks and aftermarket parts. Marketed globally under the Hyster®, Yale®, Sumitomo and Utilev® brand names, these are some of the most successful lift truck brands in the industry. NMHG is one of the world’s largest lift truck manufacturers, comprised of a global network of 12 strategically located manufacturing facilities and four product development centers on three continents.
With manufacturing and product development centers across the globe, streamlining the product development process to offset the rising cost of materials while maintaining an efficient project schedule was no easy feat. Product engineers typically sent their designs to cost engineers on NMHG’s manufacturing team for cost estimating. It was a very comprehensive, but highly manual process that took time and was designed for use by a small group of cost estimating experts. As a result, cost information was not always available and it was difficult to share that information across different departments or physical locations.
NMHG was introduced to aPriori in mid-2006. After an initial evaluation of the software, NMHG realized aPriori could help roll up costs, and provide a flexible costing engine to instantly and precisely determine the cost of any part or product from a CAD model, based on the manufacturing process, materials to be used and the factory or region where it would be produced. It could also be used by designers, cost engineers and sourcing professionals rather than just cost estimating experts in the manufacturing organization.
Today, NMHG uses aPriori across the globe and in all four of its product development centers. It has 30 licensed users in engineering and product development. aPriori’s manufacturing process modules for Sheet Metal, Welding, Sand Casting, Bar & Tube and Machining provide NMHG engineers with accurate, industry-standard cost benchmarks for what new products and parts should cost.
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“Like many things, success in product cost management comes down to leadership and execution. aPriori is a vital tool in that regard. It provides the tools the design team needs to take responsibility for product cost. It also highlights the need to do something about product cost – in black and white details. Prior to aPriori, our team simply did not have the insight into cost analytics. There was no focus or awareness and therefore no action. Today, that has all changed – and aPriori is playing an integral role in enabling and causing that change.”
Manager of Corporate Manufacturing, Engineering and Tooling
NACCO Material Handling Group (NMHG)