consistency

Frustrated by Inconsistent Cost Results?

Complex macroeconomic issues such as those below are making it challenging to predict manufacturing cost as new products move through the development pipeline

Rising Energy Costs & Labor Costs

Commodity Price Fluctuations

Tougher Government Regulations

In nearly every company we visit, there are no common set of processes and tools for calculating cost and managing cost data across the entire Product Team:

  • Designers and Engineers are being asked to come to a phase gate review with a design status and a cost estimate, but they have no tools to do this on their own, so they must rely on their sourcing team to get a quote from a supplier – this can often take weeks.
  • Sourcing teams have annual targets to reduce product costs by 5 or 6%, but are given no real tools to calculate what a product “should cost”,  They are forced to rely on historical quotes for similar products that are fundamentally obsolete due to changing economic conditions.
  • Cost Engineers are estimating a standard cost long after most of the key design decisions have been baked into the product. Furthermore, this cost data is being calculated by different people and stored in disparate, distributed systems creating huge consistency and data access problems.
  • Executive Management wants answers to questions like: What is the current cost status of our next generation turbine engine?  Will this product launch at or over target cost?

At aPriori, our goal is to create a common cost culture across the enterprise by providing a unified, consistent approach and technology platform for costing that institutionalizes an understanding of manufacturing cost drivers.  This type of environment will arm all individuals with cost and manufacturing data to support profitable decision making.

 


Consistent Costing Practices Across the Enterprise

To support our vision we are looking at the needs of individuals and the hand offs between departments in a global operating environment. Not only broadening access to cost, but also pushing cost awareness earlier in a development cycle to provide:

EXECUTIVES AND PROGRAM MANAGERS

Executives and Program Managers with real-time visibility to the cost status of any product or project so they can understand where best to direct the team’s efforts,

DESIGNERS AND ENGINEERS

Designers and Engineers with Design to Cost (DTC) and Design for Manufacturability (DFM) guidance that lets them quickly identify and eliminate cost drivers early in the lifecycle,

MANUFACTURING ENGINEERS & SUPPLIERS

Manufacturing Engineers and Suppliers with the ability to provide guidance and collaborate with Designers to improve product manufacturability and drive innovation,

COST ENGINEERING

Cost Engineering with collaboration features that help them work efficiently with design and sourcing, and amplify their cost knowledge across the organization.

SOURCING

Sourcing with detailed manufacturing data and should-costs that enable them to have more productive conversations with their strategic suppliers.

The end result of consistent Product Cost Management processes and technology deployed across your organization include:

  • Faster time to market
  • Increased product profitability
  • Increased product innovation

For more information about how aPriori can help you deploy a consistent cost culture across your enterprise, contact us at productcost@apriori.com to arrange for a private demonstration of our technology.

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