Product Cost Solutions Across the Lifecycle
For manufacturers struggling to deliver profits in the face of rising product costs and global competition, understanding product costs early and throughout the product lifecycle is crucial.
aPriori’s revolutionary cost management capabilities empower organizations to identify quantifiable savings in material, tooling, labor and overhead when evaluating alternative designs, manufacturing processes and sources. With access to real-time cost assessments throughout the product development process, employees in sourcing, engineering and manufacturing will make well-informed decisions that drive significant costs out of products pre- and post-production.
Through an innovative, patented understanding of how product design, materials and manufacturing processes translate into product costs, aPriori replaces traditional, inefficient cost-estimation techniques (such as activity-based costing, contract quoting or statistical analysis) with precise cost assessments that update in real-time as parameters change. aPriori provides true cost visibility to everyone in the organization that impacts cost – designers, manufacturing engineers and planners, purchasing and sourcing professionals, cost managers, program management and executives.
Meeting Unique Industry Challenges
aPriori is used to help product teams address cost challenges across cost a wide range of industry verticals and products, from tractors, to forklifts, HVAC equipment, snowmobiles, engines, trucks, ATMs, mail machines and more.
Specific areas of expertise include:
- Agricultural Equipment / Heavy Equipment / Industrial Equipment
Meeting target costs at product launch traditionally has been a challenge for companies in the agricultural / heavy / industrial equipment industries as they lack access to accurate cost data early in the development process. aPriori’s real-time “should cost” assessments make cost data available sooner, making cost targets more achievable. With the increase in parts outsourced to suppliers, sourcing professionals can use aPriori’s “should cost” details to make sure they never overpay suppliers for their parts. Examples of aPriori customers in this space include: AGCO Corporation, CNH, NMHG, Jungheinrich, FMC Technologies, ThyssenKrupp Elevator and Dematic.
- Automotive / Transportation / Recreational Vehicles
aPriori’s ability to cost metal and plastic parts, welded assemblies and more helps OEMs and suppliers get better control over their part and product costs. With Cost of Goods sold usually between 75 and 90 percent of revenue, companies in these markets are extremely cost sensitive. Using aPriori to reduce product costs even by a small percentage yields exponential results to profit margin. Examples of aPriori customers in this space include: Ford Motor Company, Alstom Transport, American Axle & Manufacturing (AAM), Blue Bird Corporation and Commercial Vehicle Group.
- Electronics & High Technology (EHT)
With medium to high production volumes, the mechanical spend for high tech devices (e.g., computers, printers, scanners, labratory equipment, medical devices, etc.) can be significant. By supporting stage tooling, progressive die and injection molding plastic processes, aPriori can help cost-reduce new and existing parts for companies that produce computer equipment, audio & video equipment, communications equipment, instruments and control equipment, laboratory equipment and other high tech products. Examples of aPriori customers in this space include: Wincor Nixdorf, Diebold, Zebra Technologies, and several of the largest manufacturers of Computer Equipment and Peripherals in the world.
- Aerospace & Defense
Products designed and manufactured in the commercial aerospace or defense markets are often extremely complex and have very long life cycles. For commercial aerospace companies, managing cost across a complex supply chain is becoming more complicated by the day. With national defense departments increasingly moving away from “Cost-Plus” type contracts, system integrators and their subcontractors are being asked to submit fixed price bids. Multi-tier, global supply chains and fixed price targets put significant stress on manufacturers to quote accurately, design to cost, and avoid overpaying for outsourced components. aPriori was designed to help address all of these challenges through an enterprise platform approach that provides early visibility to cost, and enables frequent evaluation of cost each and every time an important tradeoff decision is made. Examples of aPriori customers in this space include: Boeing and Honeywell.
- Durable Goods/Appliances
Companies that make products with a high concentration of metal and plastic parts – including refrigerators, ovens, air conditioners, motors, generators, and other large and small appliances and durable goods – can take advantage of aPriori’s real-time cost information to keep prices low in highly competitive markets. Examples of aPriori customers in this space include: Bissell and one of the largest manufacturers of refrigerators, washing machines and ovens in the world.