aPriori Customer Success Stories
Learn how the world’s leading manufacturing companies are creating value, reducing product cost and increasing their profitability with aPriori’s Enterprise Cost Management Platform.
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aPriori helps Thomas & Betts Speed New Product Introduction Through Early Cost Visibility
Using aPriori, Thomas & Betts was able to successfully create cost estimates for new product introductions more quickly and earlier in the design process. For the new condensing units, a cost roll-up process that previously could take four to five days was completed in less than two hours. This allowed the designer engineers to create a cost roll-up months earlier than in the past.
This early visibility to cost and the ability to do a roll-up analysis against each of their own modeled production facilities, provided Thomas & Betts with a cost confidence that they had not achieved before.
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Discovering Hidden Costs
This project was initiated by a Tier One Automotive Supplier to establish the value and applicability of the aPriori Cost Management Platform. The ultimate goal was to discover and investigate cost impacts due to design, manufacturing and purchasing decisions, and to quantify the Cost of Goods Sold (COGS) savings and the ROI that aPriori could deliver if implemented.
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Reducing Cost of Goods Sold (COGS)
By this Industrial Equipment OEM’s estimation, had aPriori been implemented at the beginning of the product program, they could have saved more than $18 million by identifying upfront which parts and assemblies exceeded cost targets prior to the product launch.
The company’s Chief Information Officer stated that, when used at a corporate level, aPriori could effectively reduce COGS by a minimum of 1-2%, equating to a savings of more than $136 million annually. This savings would provide an 11% increase to the company’s net income.
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Capital Planning for New Product Introductions
At the individual part level, aPriori was +/-16% of the ABC generated cost while on an aggregated basis, the aPriori cost estimates for the total sum of a large assembly was within +/-2% of the ABC-generated cost. The incumbent pre-production cost estimation techniques used were only accurate to +/-50% as compared to the production level costs.
In addition, aPriori’s predictive time assessments alerted the company years in advance of production builds that there was not enough laser capacity on the manufacturing floor to pursue a complete laser-based strategy. As a result of this pre-production alert, the company avoided unnecessary risks to their launch date
by evaluating new capital investment alternatives.
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More than Form, Fit and Function … the Fourth “F” in Product Redesign
In a very short time period, the design engineer at this Fortune 100 Industrial Equipment OEM was able to produce a redesign with 37% less stress than the old design and a much higher resonant frequency.
Using aPriori at the earliest point in the development cycle, he predicted redesign costs per unit to be $17.75. Months later when the design was in production, the manufacturing engineering team calculated the factory-routed cost at $19.75 per unit — a number substantially below management’s cost target of $25 per machine. With an annual production volume of 6000 units and a 4-year production life, the company saved $150K over the 4-year period as a result of this single redesign.
Concurrent with this cost savings, the company resolved a potentially serious customer satisfaction problem that had already incurred thousands of dollars in annual warranty expenses. The company’s value assessment was simply, “Giving design engineers up front control and knowledge of potential cost impacts early in the design process can save a Company untold dollars.”
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