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Streamlining New Product Introduction Process with aPriori: A Caterpillar Case Study
Technology Category
- Application Infrastructure & Middleware - Event-Driven Application
- Functional Applications - Manufacturing Execution Systems (MES)
Applicable Industries
- Cement
- Mining
Applicable Functions
- Product Research & Development
- Quality Assurance
Use Cases
- Manufacturing Process Simulation
- Time Sensitive Networking
Services
- System Integration
- Testing & Certification
The Challenge
Caterpillar, a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives, was seeking to be more proactive with their cost and design decisions. The company was dealing with large, complex, interconnected, and interdependent product and part designs, which required a more proactive strategy for their product cost and design decisions. Caterpillar was also struggling with manual costing, which was time-consuming and less efficient. The company was trying to eliminate the need for cost reduction, which required additional resources and thus increased costs. Furthermore, Caterpillar was negotiating the cost of a part with a supplier for over a year without success.
About The Customer
Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company employs over 107,700 employees and generates a revenue of $48.19 Billion. Caterpillar has been an aPriori customer for many years, with aPriori manufacturing insights deployments going on at different divisions around the company and around the world. In this case study, Steve Vito, a Supplier Collaboration Engineer in Caterpillar’s Paving Products Division, shares examples of how aPriori is instrumental for Caterpillar’s New Product Introduction (NPI) programs.
The Solution
Caterpillar turned to aPriori, a platform that provides manufacturing insights, to streamline their New Product Introduction (NPI) process. aPriori enabled Caterpillar to build a product cost model in less than an hour, including the custom weld which was a significant component of the cost. After making small tweaks to the cost model, Caterpillar sent the design and product quote to a different supplier, saving them over $1.1 Million. aPriori also helped Caterpillar to solve two business problems: should cost modeling and significantly streamlining the NPI process with aPriori digital factories. The platform's cost modeling software was utilized in each stage of the NPI process, saving time and money, and helping to make better design decisions. aPriori's digital factory simulation provided Caterpillar with the manufacturing insights they needed to get their design, quality, and cost goals right the first time.
Operational Impact
Quantitative Benefit
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