Fact-based costing
Updated March 05, 2019

Fact-based costing

Narendran Dhanasekaran | TrustRadius Reviewer
Score 9 out of 10
Vetted Review
Verified User
Review Source

Overall Satisfaction with aPriori Product Cost Management

  • Product Cost Management :
At my organization we started product cost management three and half years ago, and I am responsible for all "cost down" related activities in the organization. We are also responsible for cost avoidance and target costing for the new products. we are all familiar with the tagline "Cost Before It Matters" and had a few workshops where we found the tool is very agile and able to cost using facts and data, which is critically important for survival in this fast moving-world and for being the best in the industry.

aPriori is essential in our department for activities such as:

  • Potential for current parts- Value- Base Negotiation [ Direct Savings from Current Suppliers]
  • Providing target cost for new products [ New Product Development]
  • Speed, innovation, capacity
  • Generating the Technical Ideas during the Supplier workshop , Idea Generation Workshops
Business Problem:

  • To meet the Negotiation Target for the suppliers- [ Fact- Based Negotiation]
  • Supplier Rationalization (Supplier Bench-marking)
  • Cost Break-up for the Parts (Quote Missing)
  • Most Economic ways of Producing the Parts in machining could be analysed
  • Negotiation with suppliers
  • Keeping the target cost for the new products i.e. cost avoidance
  • RFQ benchmarking
  • Producing results quickly
  • Reduced the RFQ response time drastically
  • Sheet Metal-Process Group, Transfer Die is at the Best, which gives detailed operation setup for the Parts as well as shows the number of parts in the Sheet i.e nested Loop thereby reducing the Scrap as well (Scrap Management)
  • Forging-Steel: Very good for for medium and complex medium Hot Forging type parts. Machine overhead data is very detailed where facts are used for the negotiation i.e Electricity Rate, Power, Labour Rate, Maintenance rate, etc.
  • Surface Treatment / Other Secondary Process such as powder coating, wet coat, electro plating: These all work well. We can also use masking options the treatment, In the event of of any leak tests or X-Ray inspections, we can add the process which will then account the pre/post operation time for the treatments
  • 2-Model Machining: Machines and routing combinations are huge and can be used to determine the most economic way to produce these parts. We can also override to find the supplier methodology and cost. It gives very detailed information on the feed rate, speed rate, and power capacity.
  • Geometric Dimensioning and Tolerating (GD&T) can be added on the GCD's which will help detect the super finishing process, which is another advantage. In the current 2016 R2 SP, aPriori can detect it from the CAD Models
  • Design to Cost feature, provides the design engineers as well as cost engineers to understand the which feature take most cycle time and whether changing that feature reduces the complexity in machining thereby cycle time can be reduced
  • Investment Casting Model: We have a basic model where we have captured all the processes involved, but when logic is being missed in the same in process, we have to fine-tune it to make it as effective as other process groups.
  • Powder Metal technology: Similarly, we need more process setup options in order to provide more logic for manufacturing. It does have the basic manufacturing setup
  • Mass Volume Machining: Transfer machines, swiss lathes need to be incorporated for Mass and high-speed machining
  • Forging: Hollow Forging as well as forging of Non-Ferrous metal need to addressed as the Forging cost is too high
  • No Negative Impacts
  • At our Organization, ROI is calculated in terms of time, speed, and value
  • Time: We can reduce the project implementation by a few days
  • Speed: Delivering the cost in a few hours compared to weeks in the past
  • Capacity: Tool helps to make things run parallel i.e bulk costing increases capacity
  • Value: Negotiations have resulted in savings with respect to list price
I have not used other similar , but this feel that aPriori is highly effective for agility and improving the speed, along with innovative reporting.

  • aPriori shares reports in innovative way. It uses cost insight where we can analyze the report and share stake-holders much more quickly
  • It also improves the project implementation by achieving targets and making sure the cost of the product is not above target, all the way up to launch
  • Provides more Fact to have strong arugmentation with suppliers
  • Detail Cost Break-up and various report such as Manufacturing Tool Summary, Assembly cost report can be generated
  • Add-on features help to more strong usage of tool in daily work culture to main the Cost culture in my Organisation
  • DTC-Design to Cost feature is new add on in 2017 version where we can see the features which take most cylce time and this make the Desgin Engineer to alter and see the Cycle time reduction thereby Cost
  • User-Friendnly
  • Cost Insight Reporting-Awaited Interative Reporting to our need
aPriori Product Cost Management
I am using aPriori 2016 R2 SP1 currently and it has undergone a lot of updates since I started using it, and I strongly recommend for designers, and strategic buyers to estimate the cost of parts and products.

It integrates with CAD systems and is particularly useful for estimating costs for the following industrial processes:

Forging:
  • Excellent for medium size and medium complex parts
  • Weight range: 2-50 kg
  • Material: Steel
  • Forging: Hot Forging
Die Casting:
  • Best with good routing and machine selection according to the die size and part size
  • Melting Model need very little logic
  • Separate components for Melting and Casting i.e. cost can be derived for each activity
Machining of Casting/Forging:
  • Process group is the best for machining
  • Many routings where we can play with activating the turning setup / setup axis activation
  • We can experiment with different Routing and aPriori tells us why it cannot be done and gives useful data for redesign
  • Gives all Machining parameters i.e machine name, feed rate, speed running, power capacity, etc.
Surface Treatment:
  • We can use the Parts in the barrel or in rack for heat treatment
  • Masking can be done for painting parts
Other Process:
  • Testing processes also available i.e. X-Ray test, leak test etc...
Above all it is really great tool, and big thanks aPriori for enhancing the current technology and digitalization landscape!

Using aPriori Product Cost Management

21 - We all Represent the Product Cost Management Team, and support to other various functions such as;
  • Procurement- Should Cost Analysis
  • Design Engineers- Design to Cost
  • NPD- Target Costing for New Product
1 - 
  • Able to write the Logic with aSQL
  • Possess the general Manufacturing knowledge
  • Understand the Different Cost Components for the various Process
  • Need to have general Machining Knowledge
  • Able to know the feed/speed to be given for the particular operation for Better Refinement of Cost
  • Should able to use the Process Set-up Options for the Process Group
  • Use of Secondary Process need to understand from the Drawing Requirement
  • Achieved Annual Savings of over 1.5m USD with use of Should Cost Analysis
  • Target Costing Provided to decide the New Project Development as the Concept Target Cost was far high than expected estimated cost, Which saved the Huge resources and Time for the Organization
  • Reporting- Cost Insight helps to know the potential % with current Prices
  • Integrating the ERP System with aPriori
  • PLM with aPRiori to directly access the models and run the costing
  • ONE POINT CONTACT to evaluate the Current Product and to Decide the COST for New Product
  • Helps various functions to understand the COST involved in the function via aPriori PCM
  • Also integerating the CFD Analysis Software i.e.modeFRONTIER with apriori is future development targeted
  • Not to Lose the Position of Product Cost Management Importance
  • Make Costing Simple and Ease
  • Traceablitlity of Previous Costed
  • Helps Design Engineers to actually look for the Which Feature contributes for the Most Cycle Time and help Design Engineers to re-design the CAD Model and look for the changes in the Cycle Time and the Machining parameters
  • Interactive Cost Insight

Evaluating aPriori Product Cost Management and Competitors

  • Product Features
  • Product Usability
  • Positive Sales Experience with the Vendor
  • Analyst Reports
  • One Platform to cost the maximum spend of Organization
  • Maturity in Most of the Process Group especially in Sheet Metal, Machining, Casting, Plastic, Forging,etc...
  • Process Set-up Options which able to alter the required field for the various operations and get the actual set-up in which supplier manufactures the part i.e. Feed/Speed of Machines
  • Overall "COST" before it "MATTERS"- Tag line of aPriori
  • Look for One Platform for all Process Group
  • Look for the Costing of Powder Metal, Fabrication as separate Process Group
  • Ease editing of Process Set-up Options in case of separate Tab
  • Able to easy Link to ERP systems and PLM
  • Web-Based Solutions
  • User-Friendly with Minimum input the Costing is done for the Process Group
  • Suggestions -How the Part would cost in various Locations?

aPriori Product Cost Management Implementation

aPriori team helped a lot for the implementation, as they were on remote and helping for the file run and implementing the same on remote. aPriori team extrended full support for the implementation resolving the bottleneck and bugs if any during installing the software's also, they provide professional services in order to resolve some technical issue
Change management was minimal - Change Management in the aPriori product cost Management was minimal or negligible as one need to just understand the various process group and the to know how to choose material in the aPriori and add in the volume and location then click on "Cost" button, the user see the cost in few seconds.
So no major bottleneck were experienced during the Change Management .
  • Need to have compliance with internal IT security, which was time consuming for the network security check

aPriori Product Cost Management Support

  • Easy Tracking of Status -Request
  • Automatic Follow-up mail in case we forget about our request
  • Response within 24 hours for our request
  • We will be assisted with single point contact or account holder
  • Quick response and follow-up for the request
  • In case the request are not able to complete on specified time line, they will ask for the request in time stretch
  • Easy to contact or have a Skype call for the request discussion with technical panel
ProsCons
Quick Resolution
Good followup
Knowledgeable team
Problems get solved
Kept well informed
No escalation required
Immediate help available
Support cares about my success
Quick Initial Response
None
Yes - 
  • We have customized few of our Data base where we need to pull in the Logistics & Packaging Cost in our Cost Model
  • We had missed the Logic in between and when we reported to Support Service
  • Within 24 hrs we received , inputs for the resolution i.e. Cost Model Tool set we need to upload to our request where solution provider will work on to the tool set and confirm the bug and corrected for the Change and now it works fine
  • When we have enhanced process of "Melting" we had a support on-site where they had come to our Organization and worked with Our cost modeller and made this Process enhanced
  • Similar such Process which we have enhanced where we had direct support from aPriori Support Team-"Transfer Press"
  • Support Team also helped for regional data update other than available regions provided by aPriori

Using aPriori Product Cost Management

Rating is due to below exciting factors which one can feel when we use aPriori;
  • Cost engineer need to know "What the part "Should" cost?" instantly.
  • One need to understand the cost in various Process group such as casting, forging, machining, additive manufacturing,etc...
  • One need to have comparison of various process group in single window
  • Ease of finding cost for various location for various currency in single platform
ProsCons
Like to use
Easy to use
Technical support not required
Well integrated
Consistent
Quick to learn
Convenient
Feel confident using
Familiar
Unnecessarily complex
  • Process Setup Options for customizing the routing operations
  • Routing Operations to choose the Machining method according to the Supplier routing
  • Override function is most useful one to override the actual specification
  • More Process setup options need to be used in Secondary process for better routing
Yes - aPriori Product Cost Management provide Enterprise Platform which is web based solution wherein one an look at the cost on the move, which is really most advancement in the solutions, it is pretty new and under fast development. This platform help user to share the cost components of various drivers any where as well as to feel the cost instantly