Released on: 24, July 2006
, Author: John Busa
, Audience: Software related
According to Frank Azzolino, President & CEO of aPrioriTechnologies (www.apriori.com),  There are fundamental differences in the way thatdecisions are made in the NPI process, (in the process that takes products from theconceptual design phase all the way through production delivery), by using aPrioriÂ'spredictive cost assessments vs. more traditional Activity Based Costing (ABC)methods. ABC applies methods where costs are allocated to production products after the fact , (after they have been designed, planned, sourced, and produced.)Â
During the NPI process many decisions are being made which directly influence oraffect product costs. During the conceptual design and engineering developmentphase of NPI, fundamental product decisions are being made in terms of product form,fit, and function. Typically, more than 60% of a productÂ's cost is committed earlyin the design process based on these design decisions, the remaining costs beingdetermined by planning and sourcing decisions.
Without the real time predictive cost information provided by the aPriori costmanagement software platform, these cost relevant decisions are made in a costknowledge vacuum, i.e. being made without either up-to-date or accurate costinformation, or without any information whatsoever. Without aPrioriÂ's real-timepredictive cost assessments, the only recourse manufacturers have is to usehistorical information based on previous products or determine the costs of thecurrent product after it has been in product for awhile, and then allocate thosecosts across the different activities that occurred during the NPI process. Unfortunately, once the product is in production, it may be very difficult andexpensive to make these changes.
aPrioriÂ's Cost Management Software Platform enables manufacturers to betterunderstand product cost decisions early and throughout the product lifecycle. aPrioriÂ's Cost Management Platform empowers manufacturers to lower cost-of-goodssold (COGS), provides real-time visibility to  cost-critical decision information,and builds critical cost knowledge to go on the business  offensive. aPrioriÂ'spatent-protected cost management platform allows companies to assess, control, andreduce cost of goods sold by whole percentages.
The aPriori cost management platform uses innovative, patent protected technologies,and is capable of using design information driven off of MCAD geometry. Additionallythe ability to model production facilities (including machine capabilities, rawmaterials, and facility cost structure) and the specific cost accountingmethodologies, accurate predictive, allow  forward looking real time costestimates.
 aPriori has customers in a variety of industries including High Technology,Industrial Equipment, Automotive, and Heavy Machinery. Recent aPriori customersinclude John Deere, Panasonic, Thomas & Betts, JLG, Wrobel Engineering, and DanaCorporation.Â
Source: Express-Press-Release.com
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