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News Release from: aPriori | Subject: Cost management platform software - AGCO
Edited by the Manufacturingtalk Editorial
Team on 19 December 2007
Cost management software to cut costs
A global manufacturer of agricultural equipment and related replacement parts has selected cost management platform software to provide visibility into product costs from design to manufacturing.
A global manufacturer of agricultural equipment and related replacement parts, AGCO Corporation in the USA, has selected the aPriori Enterprise Cost Management Platform to support its product cost reduction initiatives AGCO will use aPriori to increase its ability to drive costs out of its products before production
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.
Real-time product cost assessments are automatically generated by aPriori throughout the design and manufacturing planning processes.
"aPriori will enable AGCO to instantly and continuously assess the cost of our parts beginning early in the design phase," said Garry Ball, senior vice president of AGCO's Worldwide Engineering department.
"Real-time access to precise cost information will significantly improve our ability to make product trade-off decisions, ultimately resulting in a measurable reduction in product and manufacturing costs".
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.
Vice president of Sales at aPriori, John Helm, said: "AGCO joins a growing list of leading companies that are improving their ability to understand how much a product will cost to manufacture.
aPriori's real-time, precise assessments allow manufacturers to consider cost in early design decisions, helping to ensure product cost targets will be achieved".
* Real-time, predictive and precise product cost assessments - the aPriori Enterprise Cost Management Platform is the first software solution to provide discrete manufacturers and product companies with real-time, predictive and precise product cost assessments throughout the entire development and production process.
aPriori's revolutionary cost management capabilities empower organizations to identify quantifiable savings in material, tooling, labor and overhead while evaluating alternative designs, processes and sources.
In a report to manufacturingtalk.com, the company said that by generating cost assessments early in the product development process, aPriori customers drive significant costs out of their products prior to production, reducing cost of goods sold (COGS) by whole percentage points and improving the overall financial results of the company.
Through an innovative, patented understanding of how product design, materials and manufacturing processes translate into product costs, aPriori replaces traditional, inefficient cost-estimation techniques 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.
* About AGCO Corporation - founded in 1990, AGCO Corporation is a global manufacturer of agricultural equipment and related replacement parts.
AGCO offers a full product line including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements, which are distributed through more than 3,200 independent dealers and distributors in more than 140 countries worldwide.
AGCO products include the following well-known brands: AGCO, Challenger, Fendt, Gleaner, Hesston, Massey Ferguson, New Idea, RoGator, Spra-Coupe, Sunflower, Terra-Gator, Valtra, and White Planters.
The Company is headquartered in Duluth, Georgia, USA, and, in 2006, had net sales of US$5.4 billion.
* About aPriori - the aPriori Enterprise Cost Management software platform improves the financial results of discrete manufacturing and product companies by enabling them to actively control Cost of Goods Sold (COGS) with real-time, predictive and precise product cost assessments.
aPriori's proven and patent-protected software platform allows companies to assess, control and reduce the cost of their products in real time, at any time during design, sourcing and manufacture.
This enables companies to understand the cost impact of product design decisions earlier than ever before, reduce their Cost of Goods Sold, and improve operating margins.
The aPriori platform is rapidly deployable across the extended enterprise, up and running in a matter of weeks generating cost assessments reflecting a customer's factories' and suppliers' capabilities.
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