Case Studies
Solar Turbines & aPriori Case Study
Solar Turbines, a division of Caterpillar, partnered with aPriori to model manufacturing costs for a part with a cost structure heavily driven by materials (30% of the total part cost). Working with the supplier, they determined that excess cost was rooted in supply chain waste: the supplier was paying 50% more for materials than the price available to Solar Turbines. Simply by identifying a more cost-effective materials source, per unit costs could be reduced by 15%.