aPriori Strategic Value Assessment Demonstrates Cost Consequences

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Released on: 31, July 2006
, Author: John Busa
, Audience: Software related

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During the aPriori Strategic Value Assessment (aSVA) theaPriori Cost Management software platform is on-site to facilitate making real-timeproduct cost assessments; design changes in the MCAD system, as well asunderstanding the product cost implications of various sourcing decisions,manufacturing process decisions, and material choices. The activity allows customerto experience how aPriori drives product cost reductions. Sources of cost reductionmay come from:

 Better cost information during the product design process suggestingdifferent design alternatives  Different materials decisions based on real-time cost information Planning/routing/manufacturing decisions based on knowing the costconsequences of different alternatives Should-cost analyses available earlier in the product development cycle More efficient make/buy decisions based on fact based product cost estimates

Specifically, the aSVA validates:

 aPriori works in our customers business environment: Verifying that the relevant production facilities and manufacturing processes canbe modeled Confirming that predictive and accurate cost assessments can be created for ourcustomersÂ' products Certifying that customers can use aPriori in their everyday tasks to accomplishproduct cost reductions quickly and easily

 aPriori helps customers find ways to lower product costs by demonstrating: It can provide real-time visibility to cost information at all stages in theproduct development and delivery process. It provides fast and accurate product cost estimates that can be used as dailydesign, manufacturing, and sourcing decisions are being made.

Customers have the opportunity to improve their approach to product cost managementby incorporating real-time product cost information into all product development anddelivery activities.

The customers choose a number of representative manufactured products to validatethe cost saving potential of the aPriori system. They model the productionfacilities; those facilities may represent internal production facilities or thefacilities of suppliers or vendors. The goal of the aSVA activity is to generateaccurate product costs for the representative products and to explore realisticproduct cost reduction scenarios.

During the aSVA, aPriori provides a 4-day on-site session that includes solutioneducation, orientation of the application, and hands-on use. The training is forrepresentatives of all user communities who impact and manage product costs (such asrepresentatives from Sourcing/Procurement, Accounting, Manufacturing, DesignEngineering and Management.)

The aSVA will conclude with a final report that summarizes the project and presentsa viable business case for the long term adoption of the aPriori Cost Managementsoftware platform at our customers. This business case is based on product costreductions that determine the ROI of the aSVA activity and as well as the projectedROI of long term adoption.

An aSVA takes approximately four weeks to complete and consists of five keyactivities: 1) Preparing technical environment2) Gathering data 3) Building the production facility models4) Using the aPriori Cost Management System at the customerÂ's site to validate theaccuracy of product cost estimates and to explore cost reduction opportunities5) Delivering the business case validating the applicability of the aPriori costmanagement system as well as short and long term ROI opportunity

To learn more about this important program go to:http://www.apriori.com/ser vices/asva.html.

 aPriori has customers in a variety of industries including High Technology,Industrial Equipment, Automotive, and Heavy Machinery. Recent customers includeJohn Deere, Panasonic, Thomas & Betts, Flextronics, JLG, and Dana Corporation.Â


Source: Express-Press-Release.com
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