Inrodcion apriori allows s o realize hard-dollar savings across or prodc lines and posiively impac he profiabiliy of or company. DAVE LONGREN CHIEF TECHNICAL OFFICER POLARIS INDUSTRIES Thank yo for yor ineres in apriori s revolionary new prodc cos managemen echnology. Indsry leading companies sch as AGCO Corporaion, Polaris, ThyssenKrpp, Zebra Technologies, Toro/Exmark, NACCO, Tecmseh, MacDon Indsries and Cmmins are sing apriori s Prodc Cos Managemen plaform o save hndreds of hosands, even millions of dollars each year. apriori s primary vale comes from helping or csomers: Lanch New Prodcs a or Below Targe Cos Maximize Cos Savings on Re-Design Projecs Never Overpay for Osorced Pars, and Increase he Accracy, Consisency and Speed of RFQ Responses The ebook we have assembled here represens a collecion of real-world projecs compleed by or csomers, and illsraes he poenial savings hey have idenified sing apriori. Becase many of hese companies are brand sensiive we have removed heir names. B, res assred, every one of hese examples represens an acal se case. Some of he savings yo will see are relaively small, some of he savings are moderae, and some of he savings are jaw-dropping. P ogeher, hey can add p o a sbsanial cos savings for yor company over ime. 2 / 41
Changing Processes (Re-Roe & Re-Qoe) BRAKE PEDAL Pedal for lif rck, crrenly a weldmen. Re-designed as a sand casing. Crren Cos: $13.00 apriori Cos: $7.00 Annal Volme: 20,000 Noes: apriori aomaically recommended die-casing he par becase of he high annal volme. Annal Savings: $6 x 20,000 = $120,000 3 / 41
Re-Qoe Prodcion Pars STEP-BATTERY BOX Used as a sep and a cover for baery or ool box. Csomer sspeced ha i was over-priced. Crren Cos: $40.00 apriori Cos: $22.00 Annal Volme: 6,400 Noes: Even afer inclding a mark-p of 25%, he par shold cos $27.50 Annal Savings: ($40 $27.50) x 6,400 = $80,000 4 / 41
Re-Qoe Prodcion Pars Crren Cos: $17.32 apriori Cos: $6.94 Annal Volme: 24,000 Cos afer Markp: $7.91 Esimaed Annal Savings: $225,840 I doesn have o be a complicaed par o drive big savings. 5 / 41
CASE STUDY: Cos Bliz q Forne 500 Trck Manfacrer holds periodic meeings wih is sppliers o collaborae on how prodc coss can be redced. q In advance of he meeings, hey engaged wih apriori professional services o idenify poenial cossaving opporniies. q Two-day projec reviewed 128 pars q 25 pars were idenified for re-qoing q Toal savings realized: $718,000 ($29,000 per par) ALUMINUM DPF STEP Crren Cos: $229.63 apriori Cos: $194.96 Annal Volme: 1,700 Esimaed Annal Savings: $59,000 TRACKING ROD REINFORCEMENT Crren Cos: $6.32 apriori Cos: $4.21 (wih $26,000 in ooling) Annal Volme: 35,000 Esimaed Annal Savings: $75,000 6 / 41
Process/Maerial Trade-offs (Re-roe) Casing Cos Machining Cos Toal Cos Crren Mehod: (Sand Casing Cas Iron) apriori Opion A: (Sand Casing Alminm) apriori Opion B: (Die Casing Alminm) Volme: $39.50 $33.12 $72.62 $36.52 $26.21 $62.73 $25.22 $26.21 $51.43 80,000 pars per year for 2 years Toal Savings Over 2 Years: $3.4 Million 7 / 41
apriori is helping s o achieve or sraegic prodc cos redcion goals while keeping projecs on schedle. Access o real-ime shold cos assessmens redces he nmber of spplier qoes and allows or employees o evalae more cos-saving alernaives for each prodc concep. As a resl, or employees have sed apriori o re-qoe prodcion pars a lower prices and redesign a nmber of prodcs for more efficien maerial ilizaion and manfacrabiliy. RICK GOLDSMITH MANAGER OF CORPORATE MANUFACTURING AND TOOLING NACCO MATERIALS HANDLING GROUP, INC. 8 / 41
Prodc Re-Design Crren A B C ACCESSORY MULTI-BATTERY TRAY MOUNT 30 Mines of Design Work wih Real-ime Cos Crren Cos: apriori Opion A: apriori Opion B: apriori Opion C: $155.00 $129.83 $62.10 $59.64 Annal Savings: $95,000 9 / 41
Re-Design Beer Solion, Less Cos Before Afer PLANTER PLATFORM & ACCESS LADDER Cos Redcion: $166.00 Annal Volme: 500 Annal Savings: $83,000 10 / 41
CASE STUDY: Re-Design Projecs q Consrcion Eqipmen Manfacrer: oal prodc cos redcions achieved and in-process o dae $1.5 million q Achieved $253,840 in annalized savings from redesigning six exising par nmbers (paid invoices). q $339,000 in redesigned exising pars ha are in es or waiing for new sppliers o be se p. Crren Design New Design q Anoher $165,114 in savings for nine oher pars ha will be implemened in he nex release. q $750,000 in savings for exising pars in re-qoe savings idenified by apriori. BRACKET Crren Cos: $31.96 (3-Par Weldmen) New Design Cos in apriori: $9.89 (1-Piece Formed) Annal Savings: $45,199 11 / 41
Qoe Validaion Exercise Highlighs ha new spplier cos is reasonable. Speed and accracy are GREAT! apriori chose he same processes as I wold. PLOW BLADE Spplier Cos: $41.26 apriori Cos: $30.64 Toal apriori Cos: $35.25 (wih Spplier Profi) 12 / 41
Qoe Validaion Exercise apriori confirmed he spplier cos was appropriae. Faser han sing BDI for similar cosing aciviy. MAIN FRAME Spplier Cos: $134.00 apriori Cos: $107.00 Toal apriori Cos: $140.00 (wih Pain and Spplier Profi) 13 / 41
Or global expansion represens an imporan sep forward in or deploymen of apriori a AGCO. The real-ime access o precise cos informaion ha apriori provides has proven o be a criical elemen in or overall campaign o redce coss and manage profiabiliy in hese difficl economic imes. Wih apriori, or design and manfacring engineers immediaely ndersand he implicaions of each and every radeoff decision hey make hrogho he corse of heir daily work. We look forward o conining o drive vale from his parnership as new sers and faciliies deploy he echnology. GARRY BALL SENIOR VICE PRESIDENT OF WORLDWIDE ENGINEERING AGCO CORPORATION 14 / 41
Qoe Validaion Exercise Afer frher invesigaion, we fond ha spplier was bying a special sock casing high maerial cos. apriori helped o idenify ha here was a serios isse wih he cos of his par. Spplier Cos: $20.00 apriori Cos: $7.11 Savings per Par: $12.89 15 / 41
Re-Qoe Prodcion Pars TOP COVER Crren Cos: $7.58 apriori Cos: $5.78 Annal Volme: 80,000 Esimaed Annal Savings: $144,000 16 / 41
Re-Qoe Prodcion Pars REAR PANEL Crren Cos: $2.04 apriori Cos: $0.60 Annal Volme: 40,000 Esimaed Annal Savings: $57,600 17 / 41
Re-Qoe Prodcion Pars DISPLAY BOARD TOP COVER Crren Cos: $1.18 apriori Cos: $0.34 Annal Volme: 40,000 Esimaed Annal Savings: $33,600 18 / 41
Re-Qoe Prodcion Pars 17 TOUCH PANEL Crren Cos: $2.89 apriori Cos: $1.46 Annal Volme: 20,000 Esimaed Annal Savings: $28,600 19 / 41
Re-Qoe Prodcion Pars 7 INVERTER BRACKET Crren Cos: $1.22 apriori Cos: $0.75 Annal Volme: 20,000 Esimaed Annal Savings: $9,400 20 / 41
ThyssenKrpp has seleced apriori s prodc cos managemen solion based on he sysem s ease of se, and flexibiliy o be deployed agains a wide variey of cos managemen se cases. apriori is a highly aomaed sysem, so or sers do no need o be cos expers o effecively leverage he sysem. All hey have o do is open a 3D CAD model, ener a few basic inps, and hey can generae an accrae cos esimae in seconds. PATRICK BASS SENIOR VICE PRESIDENT OF ENGINEERING THYSSENKRUPP ELEVATOR 21 / 41
Prodc Redesign Before Afer HD BRACKET apriori Cos: $1.16 Redesign Cos: $1.02 Annal Volme: 160,000 Esimaed Annal Savings: $22,400 22 / 41
Reqoe / Redesign / New Maerials Crren Design New Design HORIZONTAL SCANNER TOP COVER WITH REPLACEABLE GLASS Crren Cos: $21.78 Design Opion A: Design Opion B: (shown above) $13.96 (No brackes or ape; no adhesive cos) $10.22 (Plasic op; incldes assembly level savings) Annal Volme: 7,000 Esimaed Annal Savings: $80,920 23 / 41
Prodc Redesign Before Afer BRACKET IO Crren Cos: $1.16 apriori Cos: $1.02 Annal Volme: 160,000 Esimaed Annal Savings: $22,400 24 / 41
Examining Design & Manfacring Alernaives Crren Design New Design BOTTOM PLATE FROM COOLING SYSTEM Crren Design: 85.00 (Shee meal pars, assembled) New Design: Tooling: Annal Volme: 3,000 Esimaed Annal Savings: 142,940 20.78 (One piece plasic) 49,720 25 / 41
Redesign/Maerial Trade-off Crren Design New Design FRAME WELDING Crren Cos: $223.51 New Design Cos in apriori: $190.17 (Thinner be secions/-bar gsse bes) Annal Volme: 2,000 Esimaed Annal Savings: $66,680 26 / 41
apriori was able o demonsrae ha hey cold read in all differen ypes of CAD prodc models from csomers, and rapidly ell s he cos o manfacre ha par, and he mos cos efficien roing wihin or plan. This is somehing ha wold normally ake s days o deermine. Wih his ool in he hands of or cos esimaors, we believe ha we will be able o respond faser, o a higher volme of opporniies, wih more deailed informaion han we ever have before. ROB KABEL DIRECTOR OF INFORMATION TECHNOLOGY SFI 27 / 41
apriori allows fas cos comparison of manfacring mehods. Redesign/Maerial Trade-off Crren Design New Design CARRIAGE Crren Cos: New Design Cos in apriori: $20.89 (Nickel Plaed) $7.81 (Redce size of par, change o galvanized) Annal Volme: 2,000 Esimaed Annal Savings: $26,160 28 / 41
Examining Manfacring Alernaives MAIN FRAME SIDES AND FLOOR Crren Cos: apriori Cos: $75.54 (Laser c) $33.29 (Laser perimeer & large holes; pnch oher cos) Annal Volme: 14,000 Esimaed Annal Savings: $591,500 (Laser cycle ime savings: 14 min./machine) 29 / 41
Examining Manfacring Alernaives CAGE REAR PIVOT Crren Cos: apriori Cos: Annal Volme: $16.56 (Machined casing wih x-ray) $10.05 (Brn from plae hen machine hole) 22,000 (2 per machine) Esimaed Annal Savings: $143,000 ($13.00 per machine) 30 / 41
Examining Design/Manfacring Alernaives Crren Design New Design UPPER LINK BOOM CROSS BEAM Crren Cos: New Design Cos in apriori: $43.97 (6 separae pieces, pls welding) $35.04 (Combine 6 pars ino single par) Annal Volme: 4,000 Esimaed Annal Savings: $35,700 31 / 41
Examining Design/Manfacring Alernaives Crren Design New Design BOOM STEP Crren Cos: $7.75 (Tread plae: $7.63; Hardware 4x$0.03 = $0.12) New Design Cos in apriori: $3.72 (Tread srip 3x$1.14 = $3.42; Welding: $0.30) Annal Volme: 4,000 Esimaed Annal Savings: $16,000 32 / 41
Examining Design/Manfacring Alernaives STEP COVER Crren Cos: Crren Tooling: apriori Cos: $13.82 (Laser c) $2,500 (Csom form ool) $11.88 (Samping) apriori Tooling: $43,400 (Blanking die - $16,000; Piercing die - $20,000; Forming die - $7,600) Annal Volme: 11,000 Esimaed Annal Savings: $21,300 33 / 41
apriori has demonsraed o s ha hey can provide a meaningfl impac on or effors o drive coss o of or prodcs, nlike any ool we have evalaed in he pas. apriori s real-ime access o cos informaion will improve or abiliy o make prodc rade-off decisions, limaely resling in a measrable redcion in prodc and manfacring coss. JEFF CEGALIS VICE PRESIDENT OF ENGINEERING NCR 34 / 41
Shold Cos Savings Crren Cos Shold Cos Annal Volme Angle Bar Spplier A Bshing Spplier B Boom Lock Pin Spplier C $2.58 $0.67 USA Shold Cos $1.91 Savings Per Machine $2.45 $1.86 Low Cos Conry Shold Cos $1.18 Savings Per Machine $12.55 $7.26 Spplier C Bys from A $5.29 Savings Per Machine 2,330 9,320 11,000 Esimaed Annal Savings: $67,800 35 / 41
Examining Design/Manfacring Alernaives Crren Design New Design UPPER LINK BOOM END PIVOT Crren Cos: $38.06 (Forging $32.98; Bshing $5.08) New Design Cos in apriori: $24.17 (Addiional Tbe Cos $9.56; Boss $4.53 + $5 o rn inside; Bshing $5.08) Annal Volme: 8,000 (2 Per Machine) Esimaed Annal Savings: $104,000 36 / 41
Examining Design/Manfacring Alernaives Crren Design New Design BOOM LOCK Crren Cos: $10.99 (Par 1 $4.06; Par 2 $2.40; Welding $4.53) New Design Cos in apriori: Annal Volme: $7.32 (Tooling $33K) 22,000 (2 Per Machine) Esimaed Annal Savings: $80,700 37 / 41
Dring or prodc developmen process, we need o ndersand how he naral evolion of design conceps affecs cos. Ofen imes, we receive a qoe on a preliminary design and one on he final design which is mch higher. Wiho visibiliy o cos dring he design cycle, we have no insigh ino which changes creaed he addiional cos. Now, wih apriori, we will know he cos impac of every radeoff decision we make a he exac momen we consider he change. This will allow s o consciosly accep he change or evalae a more coseffecive alernaive. We believe ha having apriori on each engineer s deskop will significanly improve or abiliy o hi arge coss, and limaely improve or profiabiliy. JIM BUTZEN DIRECTOR OF ADVANCED FEATURE DEVELOPMENT ZEBRA TECHNOLOGIES 38 / 41
Examining Design/Manfacring Alernaives DUAL ALTERNATOR BRACKET Crren Design: $1,729.94 (Machining from Bille) New Design Cos in apriori: $98.80 (Manfacring Change o Cas; Tooling $9,879) Annal Volme: 100 Esimaed Annal Savings: $163,114 39 / 41
Process/Maerial Trade-offs DUAL ALTERNATOR BRACKET Mehod Cos Tooling Crren Cos: Sand Casing $17.91 $40,000 apriori Cos: Sand Casing $6.30 $41,360 apriori Opion A: Die Cas Alminm $2.46 $51,850 apriori Opion B: Injecion Molding $6.71 $44,500 Annal Volme: 11,000 Esimaed Annal Savings: $158,100 40 / 41
For More Informaion Thank yo for yor ineres in apriori s revolionary new prodc cos managemen echnology. For more informaion, or o arrange yor own personal prodc demonsraion over he web, please conac s a yor convenience. Visi or Websie: www.apriori.com Call: 1-978-371-2006 Email: Rick Brke, Vice Presiden of Markeing rbrke@apriori.com Real-ime access o precise cos informaion significanly improves or abiliy o make prodc rade-off decisions, limaely resling in a measrable redcion in prodc and manfacring coss. GARRY BALL SENIOR VP OF WORLDWIDE ENGINEERING AGCO CORPORATION 41 / 41 m