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Product Pricing App Gets Update

Posted on Monday, April 28, 2008 3:59:39 PM       Sign Up to receive Daily News Alerts in your E-mail Inbox                            Digg This Article   Add to Delicious

Abstract:For manufacturers looking to price their products during the design stage, aPriori offers a preview of an upcoming release that adds support for major 3D CAD systems.
Keywords:Product pricing, determining product prices
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Cost management analysis software provider aPriori today previewed version 6.0 of its Enterprise Cost Management platform, which features extended integration to several 3D CAD systems for real-time product cost analysis.

The latest version of aPriori Enterprise Cost Management, previewed today at Dassault Systemes’ COE PLM user conference in Orlando, FL, integrates with 3D CAD applications, including Dassault’s CATIA version 5 and SolidWorks, and Siemens PLM Software’s NX, in addition to its existing support for PTC’s Pro/ENGINEER Wildfire, the company said.

The new version, scheduled for general availability this summer, allows manufacturers to analyze product costs in various production environments in real time, officials said.

“Anyone who impacts or manages cost, including sourcing, manufacturing, and design departments, can use aPriori to make decisions that can reduce the cost of a product,” said Eric Hiller, founder and chief technology officer, in an interview.

The aPriori software works by analyzing 3D designs from a CAD system in conjunction with sourcing and production volume information to help a user determine what a product will cost to manufacture. A sourcing agent, for example, can use the software to help make decisions during supply negotiations. After a product launches, the agent can use the software to determine whether certain parts can be sourced in a better way or to evaluate future opportunities for improvement.

“Helping companies increase their profits on products is our goal,” Hiller said, adding that a substantial portion of a manufacturer’s revenue often comes out of the bottom line after manufacturing costs are factored in.

In addition to its use in sourcing, officials said, the aPriori system can afford design engineers a real-time assessment of the cost of various designs. “They can try alternative designs on the CAD system and instantly get information on cost changes and cost visibility to know which way to go with their designs, instead of hoping the design contains the best combination of function and finance,” Hiller said.

Manufacturing personnel can use the software to discern a product’s optimal route through the production line or to determine which machines should be used in the sequence, depending on the options to be added to a specific part or assembly.

The ability of the aPriori software to work with the major CAD systems was a key request from both existing and potential customers, officials said, because companies so often use a variety of systems. In addition, in a multi-tiered supply chain, a manufacturer needs to be able to perform cost analysis on files created in suppliers’ systems, which often differ from those of the manufacturer.

Version 6.0 of the aPriori Enterprise Cost Management platform includes a new module for extruded bar, rod, and tube shapes, in addition to existing support for sand casting, die casting, sheet metal assembly, injection molding, and welding, officials said.

The software also includes usability enhancements, such as a new viewer interface for users who don’t normally use CAD systems — for example, purchasing managers, Hiller said.

Pricing for the Enterprise Cost Management product varies based on a company’s size and which functional modules it requires, officials said.