“LeanCOST allows a considerable saving of time in the complex phase of choice of production technology. Thanks to the ADVANCED interface, designed for us industrialists, we are able to have a very high level of detail and great control during the entire cost analysis activity. ”
Processes and Methods Office – BLM
The BLM Group designs and produces machines and systems for the whole tube processing. With thousands of applications all over the world and more than 50 years of experience, the main company BLM SPA offers a wide range of customized services and solutions.
BLM was looking for a tool enabling an objective and precise analysis of the economic feasibility of different design alternatives. In particular, the company needed to optimize its product cost estimation process to obtain precise estimates in a fast way. Therefore, BLM was asking for a tool to support the industrial engineers to be more accurate on the basis of objective parameters. The final aim is to making estimation completely independent from the subjectivity of the specific person who manages the manufacturing costs.
Today, the product cost estimation process in BLM is a structured and standardized process with LeanCOST. Data about raw materials and machines are shared among the different business units and the company know-how is formalized to enhance the overall product cost estimation process. Furthermore, LeanCOST helps BLM to evaluate the economic feasibility of different technological alternatives in a rapid and easy way to quickly decide of outsourcing or making components internally (“make or buy”) based on objective parameters.
If outsourcing is more convenient, it is possible to carry out a simpler negotiation thanks to the detailed technical estimates that are automatically generated by LeanCOST.
LeanCOST allows a considerable time reduction during the selection of the best production technology. Thanks to the ADVANCED interface, designed for technologists, we can reach an high level of detail and a full control during the product cost estimation process Cost Analysts Dept. – BLM
With LeanCOST BLM achieved important results:
- Reduction of time spent in components cost estimation for manufacturing/purchasing (-30%);
- Saving manufacturing costs thanks to a higher awareness about cost from the earliest design stages (5-7% on average, up to 30% in critical item);
- Reduction of purchasing costs (30% per year);
- Increase of accuracy in product cost estimation (up to 50%);
- Fast negotiation with suppliers (on average, from 7 days to just one day).