After batch costing groups of parts, aPriori automatically runs the following analysis:
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Cost per Mass Analysis: aPriori determines the average cost per mass, shows you which parts’ cost per mass are above the average, and computes the potential cost reduction opportunity by annualizing the per component savings based on production volume.
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Cost Comparison: aPriori calculates the variance between an existing part cost (from a current cost or quote) and an aPriori cost estimate. You can sort to find the parts with the greatest variance. These parts are the most likely candidates for cost reduction.
The Bulk Costing and Analysis module uses Rollups to display cost analysis results.
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The Bulk Costing & Analysis Output includes all fields that are typically available in a Rollup plus some additional categories of data elements: Quote Info, Quoted Cost Per Mass Analysis, Cost Comparison (compares aPriori Cost to Quoted Cost), aPriori Cost per Mass, Stock Dimensions and GCD Summary.
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To identify outliers, navigate to the Headings “Quoted Cost Per Mass” and “Cost Comparison.”
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By looking at the cost per mass based on the price you’re currently paying and a comparison of the current cost to the aPriori cost, you can quickly ID outliers and rank those with the greatest potential cost savings.
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Identify the outliers with largest cost-down potential by sorting on “Est. Annual Savings Based on Avg. Quote Cost Per Mass” and “Est. Annual Savings Based on Var. Between aPriori & Quoted Cost.”
About Quoted Cost Per Mass
- Quote Cost Per Finish Mass = Finish Mass / Quoted Total Cost
- % Var. from Avg. Quote Cost Per Mass = percent difference between the part’s cost per mass and the average quoted cost per mass of the group. The average cost per mass is automatically calculated for any rollup that you create.
- Analyzing the % Variance for the Avg. Cost per Mass is meaningful only if you have related parts in the rollup. aPriori recommends that you, at a minimum, group parts by process family. Additionally, you may want to segregate parts even further considering variables such as product line, supplier, or part type.
- Est. Component Savings Based on Avg. Quote Cost Per Mass shows how much a part would cost if it had the average cost per mass.
- Est. Annual Savings Based on Avg. Quote Cost Per Mass equals Estimated Component Savings * annual volume.