How We Overhauled Our Global Costing Process with aPriori

Cost modeling for a global company can be a daunting task without the right tool. At Whirlpool Corporation, we increased efficiency and streamlined our modeling capability through a customized real-time product cost assessment platform.

Founded in 1911, Whirlpool Corporation is a globally-recognized appliance company. A company our size is constantly on the cutting-edge of innovation, which includes cost modeling. To maintain our status as industry leaders, we recognized that we needed a better way to globally manage our cost modeling capability.

Our cost modeling processes had become static and sharing in real time was not easy. In addition, we needed something highly customizable because Whirlpool Corporation has a constant need to customize cost modeling. The current cost modeling platform had become inadequate to meet our global initiatives. We needed a better way. aPriori’s product cost assessment platform provided a better way for us to meet those initiatives.

aPriori Adoption

During the fall of 2013, we began implementing aPriori within our Target Cost Management group. As the technical lead, I worked on the global structure, architecture, and user implementation and development. I also worked in tandem with the project sponsor to align and structure all the database information. It was essential to make everything work for our users in all our regions, which include: the U.S., Mexico, Latin America, Europe, China and India. The implementation of aPriori has generated some outstanding results. Within any given month, we complete hundreds of cost models across the globe. So how did we achieve such efficiency? We accomplished it through the customization capabilities of the platform and globally streamlining our processes.

Our journey began by finding a flexible platform for our entire costing organization. There are three parts to our organization: cost modeling, cost researchers and process partners. Through the aPriori platform, we have been able to establish an ecosystem where the three departments can easily collaborate. Working together in the platform allows us to exchange real-time data and boosts our efficiency.

Additionally, it was important the platform have functionality that would allow us to write new code and script to develop different modeling capabilities. I liken the customization that is possible within aPriori to working with spreadsheets. A basic understanding of spreadsheets is fine for some and it can do a great deal even at a basic level. However, there is a lot more the program can do if people take the time to learn all the features. aPriori is similar in this regard.

Dedication to learning and developing an intricate knowledge of aPriori will create phenomenal cost models with a tremendous amount of detail. aPriori is such an extensive program, it can do everything from updating default values for your company to calibrating costs as an aggregate across a region. Having these types of features is extremely important for growing a global team.

Global Cost Modeling

Whirlpool Corporation has staff members in cost modeling globally. Aside from the cost modeling department, there are 2 other user groups: cost research and our process partners. The research team helps develop rate and financial information to support the costing of developed models. Process partners look at information from a reporting point of view. All total Whirlpool Corporation has more than 100 current users. Our aPriori usage will continue to grow over the next few years. This means our cost modeling must operate seamlessly for maximum efficiency. It all hinges on a streamlined workflow paired with a robust and reliable costing platform. Take for example the well-oiled machine of our cost model team and the seamless workflow among costing departments.

Workflow for my team, cost modeling, begins by getting an assignment from engineering with a bill of materials. We typically get a work log assignment, which can be several assemblies, several components or several parts. We flow that out to different people within the organization. We have experts, whether it’s in plastics, metals or assemblies of different kinds.

We then have internal CAD files available. We can pull the CAD file into whichever process group we are using within aPriori and the system does the work. aPriori is a robust engine and it runs through the CAD files and does a great job of pulling out data features that can be modeled. We then verify that the inputs have valid outputs, and that all the right features have been costed. The model is saved, logged and pushed back to the process partner who then uses the information.

As I mentioned, aPriori is extremely customizable. If certain files are not available, then the cost model team uses the other features that come with aPriori, which is in their user guided modeling capability. That takes more work for the user because they must manually input certain information and certain features. It might take a bit more time, but they get the same valid output they would get if they were using a CAD file. The cost model team can keep the seamless workflow running among the stakeholders who depend on aPriori because of its flexibility and robust suite regardless if it’s via a CAD file or through customization on the guided modeling side.

In fact, we can do several in and out parts each day. The system performs quick and efficient modeling. In the past, these processes might have taken us several hours to do something that we now can do within minutes or less. aPriori is a huge advantage for us because we can get that information to different process partners quicker, which means we can get to market faster.

Plus, I love that things happen in real time. We can sit in meetings and work on trade-off and development ideas right on the spot. At times, I feel that we are the wizards behind the curtain. My team doesn’t always see downstream on the floor actual cost effect, but we know our model costs are becoming more important and being utilized earlier in the development process.

In three short years, we are already starting to see cases where people are hungry to use the data that we are producing. I think that is the advantage to having a tool that gets it done quick and accurate. It’s a result of the granularity that we can build into the system, so we get to our process partners faster.

aPriori’s staff is always available to help. We are always testing the platform’s capability and aPriori’s dedicated team is there to see just how far we can push the platform. Honestly, I feel Whirlpool Corporation and aPriori keep getting better by exploring the platform’s limits. Also, as one of the major users of the program, Whirlpool Corporation has leveraged that relationship to strategically drive aPriori’s development roadmap. The feedback and knowledge we provide to aPriori has allowed them to identify, enhance, and develop capability within their tool. Together we are innovating the cost modeling space and I would recommend aPriori to any manufacturing business looking to invest in a cutting-edge costing modeling platform.