Manufacturers of HVAC equipment, motors and generators, agriculture equipment, construction equipment, oil and gas equipment, and semiconductor equipment face many industry challenges that are driving the need for better understanding of cost drivers in product design, manufacturing and sourcing, such as:
Government Regulations such as emissions standards, hazardous material restrictions, and worker safety standards drive product changes that are likely to increase product costs.
Global Customer Base
A global customer base with product needs that vary dramatically by market makes product design and development increasingly complex.
Increasing competition creates urgency to launch differentiated products that satisfy quality, safety, and market requirements and puts pressure to accelerate products to market and capture first mover advantage.
How Apriori Can Help
aPriori’s Product Cost Management platform was designed specifically to help you better manage product profitability. We offer time-tested and field-proven cost models for sheet metal manufacturing, bar & tube fabrication, welding, castings, forgings, machined products, and a wide variety of secondary processes and treatments. Our customers have put these automated cost models to use on the following types of programs:
Simulation Driven Design
Simulation driven design helps you to identify and eliminate cost drivers early in the design process and significantly reduce late stage ECO churn that impacts time to market.
Design to Cost
Set a target cost and know within seconds if a design change will put you out of alignment with your cost goal. aPriori also highlights potential manufacturing issues and serves up guidance that helps the end user eliminate the problem.
Examine different design alternatives to reduce product cost and improve margins as you ramp to volume. aPriori can quickly generate a detailed cost report on each alternative and compare your options in a side-by-side scenario report that will make you the hero of your next design review meeting.
aPriori is used by some of the world’s leading industrial equipment manufacturers, including Ingersoll Rand, National Oilwell Varco, Dematic, ThyssenKrupp Elevators and many others to combat many of the above challenges and bolster their product cost management practices across departments and initiatives. Full deployments include early and ongoing use throughout new product development and current product initiatives in engineering, manufacturing, sourcing, cost engineering and finance. Manufacturers typically get started by implementing aPriori on a use case and in a couple of departments. Key aPriori capabilities that are leveraged included:
- Automated costing to generate a preliminary estimates to identify cost outliers in engineering and sourcing
- Flexible solution to refine cost as the product matures for cost engineering, sourcing and manufacturing
- Cost driver and manufacturing analysis for components and product to support decision making in engineering, sourcing and manufacturing
- Complete cost estimates for parts and hard tooling
- Dashboards and reporting to ensure all team members and stakeholders have access to product cost data in a timely fashion to inform decisions