Whirlpool Selects aPriori for Product Cost Management

  • Written By:
  • Published On: February 2014



Whirlpool Corporation, a world renowned manufacturer of major home appliances, recently announced it would use aPriori to automate its product cost estimating processes, drive global consistency in costing practices, and provide a central cost management database for use by cross functional product development teams. Using aPriori’s real-time product cost assessments, employees in design, engineering, sourcing, cost engineering, and manufacturing can make better informed decisions that drive costs out of product pre- and post-production. The idea is for discrete manufacturers to launch products at cost targets, maximize savings in re-work projects, and avoid overpaying for sourced parts. With about 95 employees, aPriori currently has approximately 100 customers.
 
The vendor’s sweet spot is large discrete manufacturing companies in aerospace and defense, agricultural and construction equipment, automotive, consumer durable, high-tech, communications equipment, medical devices, industrial equipment, and packaging. Also of interest are Tier 1 and 2 suppliers looking to accelerate their ability to respond to requests for quotations (RFQs) from large manufacturers.
 
The primary competition for aPriori is Boothroyd Dewhurst Inc. (BDI) DFMA software and Siemens PLM Software (after its Perfect Costing acquisition in 2012). As is the case in many other enterprise software areas, many companies are simply outgrowing what they have developed internally.
 
One of aPriori’s unique differentiators is that the software can leverage both 3D solid computer-aided design (CAD) models and engineering knowledge and experience to automatically generate detailed manufacturing analysis and cost estimates that quantify the impact of changes to product design, materials, manufacturing processes, volumes, and location in real time. This flexible approach to generating cost estimates was one of the key reasons why Whirlpool selected aPriori.
 
Moreover, the software enables users to leverage product cost data hosted in other enterprise applications to calculate costs and communicate product cost information between all functional organizations involved in product definition and delivery. This includes the importing of complex engineering bills of materials (BOMs) from enterprise resource planning (ERP), product lifecycle management (PLM), or other enterprise applications. In addition, aPriori looks for the following environments and needs:
  • The ability to put detailed cost information in the hands of the people that most impact product cost (without being cost or manufacturing specialists) to reduce the time they take waiting for product cost estimates
  • Reducing time to market for new products
  • Enabling tighter integration with key suppliers to understand cost expectations and implications and speed response time throughout the supply chain
 
comments powered by Disqus