Hit Target Cost without slowing the engineering process with LeanCOST
“In the company there could be constant attention to reducing and optimizing costs, complex activities but just as important to guarantee profit margins.”
Fabio Perini – Costing Manager
Fabio Perini Spa is a multinational company, part of the German Group Körber, leader in the design and manufacture of industrial machinery for the processing and packaging of tissue paper.
Being a leader in a global and a highly technological market is a big challenge. For this reason, Fabio Perini has always been looking to the future through continuous research of innovative technologies. On the other hand, Fabio Perini strongly believes that cost performance is an important successful factors, as much as meetings technical performances. The constant focus and awareness on the reduction and cost optimization from the earliest stages of design are essential to ensure profit margins for the company. Developing product according to Cost/Effectiveness view is mandatory to maximize efforts and ensure the success of the products on the market. Today there are several figures that contribute to cost management in the company. Each one has different goals, methods, and details level:
- Development Engineering team has to develop products with optimized BOM (mechanical, electrical, fluidic) to hit Target Cost.
- Purchasing has to evaluate suppliers in a clear scenario and has the commitment to share supplier’s cost saving indication with the development team.
- Cost&Estimating team has to calculate the product cost starting from single component’s production cost up to the assembly to complete and test the product since the development phase.
As consequence of its beliefs, Fabio Perini has its own component/machine cost estimating team since several years and improves continuously capacity and accuracy of its results. The department starts to equip themselves with increasingly powerful tools, starting from Excel files up to customized software that is integrated into the ERP system. The latter requires manual insertion of all data necessary to attach a standard cost to each product. According to this traditional approach, it is essential reading from the drawings or the 3D model the geometric features to manually translate them into operations with time-consuming activities.
Today the use of 3D CAD models and the opportunity to have LeanCOST software, which can estimate manufacturing cost directly from the 3D drawings, has definitely opened new interesting scenarios in Fabio Perini.
- Optimization of the costing process. LeanCOST helps Estimating team to reduce the workload in evaluating very complex components and structures. How? LeanCOST automatically identifies the product parameters by importing the geometry directly from the 3D model.
- Identification of the best design solution. How? With few clicks, you can understand in just a few minutes the cost implications of different design decisions, changing the parameters such as roughness, tolerance, quantity, and material.
- Simulation of costs according to the quantity and calculation of the “Economic Order Quantity”. Thanks to LeanCOST, the Purchasing Department can get important details of the cycles and make a fact-based negotiation with suppliers, considering different production scenarios. How? LeanCOST simulates different scenarios useful to have a more productive conversation with suppliers around the price of outsourced parts.