Product category:
Production costing and estimating
News Release from: aPriori | Subject: Cost management software
Edited by the Manufacturingtalk Editorial
Team on 04 October 2006
Cost management software gives 3X
payback
Following a highly successful initial project that resulted in a dramatic return on investment, a producer of aerial work platforms is expanding its use of Cost management software.
The aPriori company, the leading provider of enterprise cost management solutions for discrete product companies, today announced that JLG Industries, the world's leading producer of access equipment (aerial work platforms and telehandlers) will be expanding their deployment of the aPriori's Enterprise Cost Management Software Platform across their North American operations JLG's decision to expand its usage of aPriori is based upon a highly successful initial project that resulted in a dramatic return on investment (ROI)
This article was originally published on Manufacturingtalk on 24 Feb 2006 at 8.00am (UK)
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Real-time, predictive cost assessments provided
A cost management platform brings much needed innovation to the discrete manufacturing industry by providing real-time, predictive cost assessments throughout the product delivery cycle.
Measuring reduction of cost of goods sold
Realising hard savings is only possible if discrete manufacturing companies can satisfy today's demand for a direct and measurable reduction of cost-of-goods sold using effective software.
In addition, JLG views the aPriori capabilities as part of its overall corporate strategic initiative to both reduce its product line costs and time to market.
The aPriori Enterprise Cost Management Software Platform provides real-time, predictive cost assessments and control throughout the entire product development and delivery process.
aPriori's groundbreaking technology was developed to integrate the disparate cost decision making of the corporate cost management ecosystem of designers and engineers, manufacturing engineers and planners, purchasing and sourcing professionals, cost managers, and program/project management.
Further reading
Cost management platform finds 34% COGS reduction
The cost of goods sold in manufacturing can be as much as 70-90% of revenue, and users of a cost management software platform have documented up to a 34% in cost of goods sold reduction.
Visibility offered for 'cost-critical' decisions
'What if' cost trade-off analysis from component to assembly to product to production facility level is available with cost management software patform for discrete manufacturing industry.
Software helps predict return on investment
In today's business climate, companies can no longer settle for the promise of soft savings and must demand quantifiable, verifiable and predictable return on investment.
This system delivers the integrated visibility and control of product costs that enable product companies to measurably reduce their costs-of-goods Sold (COGS) by whole percentages by identifying quantifiable savings in material, tooling, labor and overhead while evaluating alternative designs, m anufacturing processes, and vendor sources.
This significant expansion order follows on the results a very successful initial implementation program at JLG.
The initial project validated that aPriori accurately and predicatively generates product costs for JLG products being built in both JLG production facilities as well as JLG supplier facilities.
This data is being used to effectively reduce product costs of a key product line.
The product cost savings generated during the first eight weeks of product usage alone resulted in a first year ROI of greater than 3:1.
Based on these results, JLG will broaden its usage of the aPriori Enterprise Cost Management Software Platform across its North American operations and expand usage of aPriori across product lines to reduc! e the p roduct costs of its sheetmetal, welded, cast, machined, and injection molded products.
"In a very competitive market, achieving cost targets at product launch is a high priority," said Wayne MacDonald, senior vice president of Engineering at JLG.
"Understanding the cost of our products both for our external suppliers as well as our internal capabilities is critically important.
aPriori has proven that it can help us achieve lower cost product designs and avoid post-launch cost reduction efforts." Frank V Azzolino, president and CEO of aPriori, said: "More and more customers like JLG are reaping the benefits of achieving cost targets and reducing product costs by using aPriori.
Improving the financial results of discrete product companies by enabling them to actively control and measurably reduce their product costs is what differentiates aPriori from any other enterprise product cost management system available." The expanded implementation begins immediately and will include JLG's North American facilities as well as several of their major suppliers.
* About aPriori - based in Concord, Massachusetts, USA, aPriori is the leading provider of enterprise cost management solutions to the discrete manufacturing industry.
aPriori's Cost Management Software Platform empowers manufacturers to lower cost-of-goods sold (COGS), provides real-time visibility to 'cost-critical' decision information, and builds critical cost knowledge to go on the business 'offensive'.
aPriori's groundbreaking and innovative Cost Management Platform integrates cost decisions for all critical functions throughout the corporate cost management ecosystem.
This enables manufacturers, for the first time, to understand product cost decisions early, comprehensively and throughout the product development and delivery cycle.
aPriori's patent-protected Cost Management Platform allows companies to assess, control, and reduce cost of goods sold by whole percentages.
The aPriori Platform truly enables 'Cost Knowledge Before it Matters'.
The aPriori has customers in a variety of industries including high technology, industrial equipment, automotive, and heavy machinery.
Recent customers include John Deere, Panasonic, Thomas and Betts, Flextronics, JLG, and Dana Corporation.
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