reducing product costs

www.apriori.com

Costing without ComplexityApril 12, 2023

Myles Peyton, Sales Director

http://www.youtube.com/user/aPrioriTech

https://twitter.com/

http://www.linkedin.com/company/apriori

www.apriori.com

© 2011 aPriori – Confidential, all rights reserved.2

Cost Challenges are Intensifying

Constantly growing volume of components to cost

Considering cost for multiple early-stage design ideas

Government and safety regulations are driving product cost increases that need to be offset to avoid price increases

Need to find new ways optimize cost of tooling

Complex global manufacturing & sourcing strategies

Predicting costs in the face of volatile material markets is hard!

Cost of Engineering Change Orders are difficult to accurately predict

Cost reduction goals becoming more challenging to achieve; finding the “needle in a hay stack” is time intensive

www.apriori.com


With aPriori you can do amazing things

Go from a 3D Solid CAD Model…

…to a detailed cost estimate in seconds

www.apriori.com


With aPriori you can do amazing things

Calculate detailed Assembly cost roll-ups…

…in seconds

www.apriori.com


Immediate Impact & Long-Term Value

Implementation Year 1 Year 2 Year 3

■ Sourcing / Supply Chain■ Sourcing / Supply Chain■ Re-Design

Savi

ngs

Real

ized

aPriori Value Proposition

■ NPI

Identify where you are overpaying suppliers for production parts

Re-quote, re-route, re-bid to get lower prices

Negotiate optimal pricing on new parts and products

Maximize cost reductions in re-design projects

Reduce the amount of re-design work required after product launches

Prevent costs from being designed in to new products

Launch new products at or below target costs

www.apriori.com


aPriori Customers6

* Partial List of Customers

Confirmed savings of $668,109 (2.5% of spend) in 5 weeks

Confirmed savings of €245k (13% of spend) in 4 weeks

Confirmed savings of $300k (5.3% of spend) in 3 weeks

Confirmed saving of $800K+ in 1st year of use for NPI and VA/VE; Tracking ~$2.4M in annual cost avoidance

Reduced time-to-market for NPI by 20% by reducing the time creating cost estimates and obtaining quotesfrom suppliers

Reduced tooling cost by 50% by using visibility to cost to make better design decisions

Confirmed savings of $668,109 (2.5% of spend) in 5 weeks

Confirmed savings of €245k (13% of spend) in 4 weeks

Confirmed savings of $300k (5.3% of spend) in 3 weeks

Confirmed saving of $800K+ in 1st year of use for NPI and VA/VE; Tracking ~$2.4M in annual cost avoidance

Reduced time-to-market for NPI by 20% by reducing the time creating cost estimates and obtaining quotesfrom suppliers

Reduced tooling cost by 50% by using visibility to cost to make better design decisions

Actual aPriori Results• AGCO Corporation• ASML• Bentley • Bissell• Caterpillar• CNH• Cummins• Diebold• Excel Industries• Exmark / Toro• Ford Motor Company• Gardner Denver• Intelligent Energy• Iveco• John Deere• MacDon Industries• Manitowoc Foodservice• NACCO Materials Handling Group• NCR Corporation• Paccar• Polaris• Pitney Bowes• Tecumseh Products• Thermo King (Ingersoll Rand)• Thomas & Betts• ThyssenKrupp Elevator• Toyota material Handling• Schindler Elevators• Sertec• SFI Fabrication• Zebra Technologies

• AGCO Corporation• ASML• Bentley • Bissell• Caterpillar• CNH• Cummins• Diebold• Excel Industries• Exmark / Toro• Ford Motor Company• Gardner Denver• Intelligent Energy• Iveco• John Deere• MacDon Industries• Manitowoc Foodservice• NACCO Materials Handling Group• NCR Corporation• Paccar• Polaris• Pitney Bowes• Tecumseh Products• Thermo King (Ingersoll Rand)• Thomas & Betts• ThyssenKrupp Elevator• Toyota material Handling• Schindler Elevators• Sertec• SFI Fabrication• Zebra Technologies

www.apriori.com


aPriori CustomersDave Longren Vice President and Chief Technology OfficerPolaris Industries

Garry BallSenior VP of Worldwide EngineeringAGCO Corporation

* Partial List of Customers



www.apriori.com


Case Study: Value Engineering & NPI

Challenge

No visibility to cost during product development cycle

Looking for tools to help control costs in highly competitive marketplace

$1.8B Manufacturer of personal recreation vehicles

Solution

Corporate rollout of aPriori to inform decisions on new and current products

Results • $821,000 product cost savings reported in first year of use• Cost avoidance estimated at $200,000 per month• Potential savings over 3 years of contract > $7M and 7:1 ROI

Results • $821,000 product cost savings reported in first year of use• Cost avoidance estimated at $200,000 per month• Potential savings over 3 years of contract > $7M and 7:1 ROI

www.apriori.com


Cost Challenges We Address

• Cost Components w/o CAD Model

Research & Development• Designing-to-Cost & Meeting Targets• Shortening Overall NPI Lifecycle• Tracking Total Product Costs (BOMs)

New Product Initiatives

• Reducing Current Product Costs• Costing Engineering Change Order • Identifying Outliers and Analyzing

Components for Cost Reductions

Value Analysis/Value Engineering• Developing Time Standards• Capital Asset Justification

Manufacturing

• Estimating Costs for NPI Projects

• Analyzing Make vs. Buy• Identifying Outliers and

Analyzing Components for Cost Reductions

Cost Engineering• Negotiating with

Suppliers• Creating Cost

Models *

• Developing Should Cost Analyses

• Analyzing Make vs. Buy• Identifying Outliers and

Analyzing Components for Cost Reductions

Sourcing• Negotiating with

Suppliers• Requesting &

Evaluating Supplier Quotes*

www.apriori.com


1. Purchasing can identify where they are being overcharged by their suppliers and have a fact-based negotiation with suppliers.

2. VAVE/Cost-Out activities to trim cost from currently manufactured parts -> for conducting what-if scenarios by making changes to geometry, material, quantity, process, routing, etc. To identify savings opportunities.

3. New Product Introduction – Engineers get real-time cost information as geometric changes are made allowing for least-cost designs to be generated at the beginning of the product life-cycle -> for engineering cost out of the product and avoid unnecessary cost from the beginning!

1. Purchasing can identify where they are being overcharged by their suppliers and have a fact-based negotiation with suppliers.

2. VAVE/Cost-Out activities to trim cost from currently manufactured parts -> for conducting what-if scenarios by making changes to geometry, material, quantity, process, routing, etc. To identify savings opportunities.

3. New Product Introduction – Engineers get real-time cost information as geometric changes are made allowing for least-cost designs to be generated at the beginning of the product life-cycle -> for engineering cost out of the product and avoid unnecessary cost from the beginning!

Usage Summary

www.apriori.com


www.apriori.com

Thank youMyles Peyton, Sales Director

April 12, 2023

reducing product costs

Business

apriori confidential

product cost savings

tooling cost

cost estimates

trim cost

costsmaximize cost

product cost reduction

detailed cost estimate