For manufacturing companies the biggest expense on a quarterly income statement is the cost of goods sold. By improving products and their processes a company can reduce the costs of goods, and improve their financial performance overall, helping to maintain competitive advantage.
Business analysts suggest numerous ways production costs can be reduced. Three that are often mentioned include the following:
- Reduce complexity
- Reduce prototype development time
- Design with cost efficiencies in mind
1. Reduce complexity
Often product lines develop independently to each other, even though interlinking activities could create sizeable savings both in time and cost for a company. Most businesses find however; that reducing complexity is actually a complex issue in itself.
aPriori has pioneered a unique enterprise cost management software to help companies unlock the potential for optimised design and cost, using information directly from their CAD system. The cost management platform recognises the geometry of your design and the cost ramifications of the processes that would be required for its manufacture. aPriori incorporates the cost of materials, labour, tooling and more to create a precise assessment of the cost to produce the part or product you’re currently working on.
2. Reduce prototype development time
Time is money; reducing your prototype development time will markedly decrease time to market and in-turn associated cost. Rapid prototyping is now even more important as trends in manufacturing centre around increasing variety, decreasing delivery time and a decreasing product lifetime.
aPriori’s Virtual Production Environments contain both data and logic to understand your business’s physical manufacturing capabilities and compare this against potentially more efficient alternatives. aPriori’s ability to generate cost assessments in seconds (rather than hours, days, or weeks) significantly speeds up the development process, because designers, manufacturing planners, and sourcing professionals never have to wait for cost information.
3. Design with cost efficiencies in mind
Whilst is it important for businesses to get products to market quickly; it is equally important to produce a cost efficient design, to ensure profit margins are kept to a maximum.
aPriori software provides you with an instant cost estimate when you make a change to a design. As a result, you can make more trade-off decisions early in the design process, and drive a significant amount of the cost out of the product.
Implementing each of these concepts independently would require a considerable amount of extra resources; people, time and money. This can all be managed for you with one software platform: aPriori.
aPriori is designed to be used by all employees within the company after very little training; fitting seamlessly in to your business activities and eliminating further resource investment.
The aPriori Product Cost Management Platform is the first software solution to provide manufacturers and product companies with real-time, predictive and precise product cost assessments. With this information at hand you can drive costs out of your products with ease and efficiency.
More information on aPriori can be found on: www.appliedgroup.com/apriori-intro/