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Time to Drive Down Production Costs

Car production in the UK has reached its highest since 2004 according to the Society of Motor Manufacturers and Traders (SMMT). Industry figures show the number of cars built in May this year was 42% higher compared with 2011. According to SMMT, UK new car sales jumped to 162,288 – a 7.9% rise compared with May 2011.

So as buying power for automotive OEMs is higher than it has been for a long time, surely there has never been a better time to look at driving down their cost of goods sold (COGS)?

Profits are not made through complacency, and cost reduction is something that should be consistently thought about. Perhaps manufacturers should reconsider the lessons learned in the 80’s from Toyota’s Production System:

“Costs do not exist to be calculated. Costs exist to be reduced.” – Taiichi Ohno

Manufacturers need to take that next step towards driving efficiency in the UK motor industry and that comes from asking cost-related questions.

aPriori is a software application that helps businesses answer cost-related questions faster than they could ever imagine:

  • What happens if I change the Product Design? Did the cost go up or down?
  • What happens to the cost of my design if we change the material from aluminium to steel?
  • What will happen to the cost if we move the manufacturing of our product from Cleveland to Romania?

aPriori can help create value for your business in many areas ranging from design engineering , manufacturing process planning, to purchasing, procurement and sourcing. aPriori enables you to unlock hidden economic opportunity by discovering the most cost-effective solutions, whilst still meeting various functional requirements.

aPriori is like no other cost management software.
aPriori does not require reams of data input every time you require a new quote. The software produces a Virtual Production Environment (VPE) to produce realistic cost assessments. A VPE contains both data and logic to understand your business’s physical manufacturing capabilities and cost accounting methodology.

The VPE is flexible to your business: it could be configured to represent your internal plant, a specific supplier, or a broad base of suppliers depending on the specific cost-related answers you are looking for.

What information can the VPE generate?
A VPE takes into account the full scope of cost-related elements to provide effective solutions; from process model logic, to machine capabilities and constraints, and manufacturing feasibility rules.

Furthermore, aPriori is designed to be user-friendly to everyone in your company. It allows you to pick the manufacturing process from a drop-down menu and gain cost estimates in real time.

Applied has numerous years of experience working with many of the leading Automotive OEM’s and their supplier integration programs. Those programs include OEMs such as Toyota, Bentley Cars, Ford, Jaguar, Land Rover, BMW, Daimler Chrysler, PSA, Renault, and Honda.