Thyssenkrupp Elevator Reduces Product Cost with aPriori


 

   ThyssenKrupp Elevator is one of the world’s leading elevator companies with sales of almost 5.2 billion euros ($7.1 billion) in fiscal year 2009/2010. Their range of products includes passenger and freight elevators, escalators, moving walks, passenger boarding bridges, stair and platform lifts, as well as quality service for all products. The company is part of the ThyssenKrupp Group, based in Essen, Germany, a global materials and technology company which consists of eight business areas. In fiscal 2009/2010, the company had annual sales of 42.6 billion euros ($58.3 billion) and employed more than 177,000 people. Globally, ThyssenKrupp Group's activities in passenger transportation systems employ 44,000 persons in 900 locations.

ThyssenKrupp Elevator has always focused on improving its products and delivering better value to its customers by refining ongoing processes and inputs. And, like most companies in a tight economic environment, ThyssenKrupp Elevator has taken an increased interest in eliminating waste in its manufacturing processes to reduce product costs and improve product quality.

The Results
Since deploying aPriori, ThyssenKrupp Elevator has seen many direct benefits to its product development process and its overall business.

  • The design team is able to evaluate and cost 3X more design alternatives than before they implemented aPriori. This facilitates product innovation while also delivering incremental cost savings.
  • It used to take design engineers approximately one week to get a ballpark quote back from the manufacturing team. Now, with aPriori, the designers can create a highly detailed cost estimate in aPriori within one hour. And, they can easily make changes to that design and understand the cost implications in seconds. This reduces ThyssenKrupp Elevator’s time to market by eliminating the lag waiting for quotes back from the manufacturing team.
  • In procurement, ThyssenKrupp Elevator has reduced its cost of sourced goods.

Why aPriori?

“ThyssenKrupp Elevator selected aPriori based on the system’s ease of use and flexibility to be deployed against a wide variety of cost management use cases. It’s a highly automated system, so our users do not need to be cost experts to leverage it. All they have to do is open a 3D CAD model, enter a few basic inputs, and they can generate an accurate cost estimate in seconds. We have integrated aPriori cost reviews into our standard product development process - to conduct Make versus Buy analyses, to streamline process routings in our manufacturing facilities and to determine if we can standardize common changes across product platforms. By taking this broad-based approach, we’re attacking cost at the point of origin, and maximizing the potential cost savings for the company.”

Patrick Bass
Executive Vice President of Research & Development Americas

 

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