Dec 192019
 

Yesterday, we announced the first of 2 new articles in SpendMatters.com!   They discussed the histor, and growth of the market of Product Cost Management software and the state of the art today. 

Normally, Eric would have made us hold of to tease you on part 2, owing to his steely Krampus and Grinch-like heart.  But, being that we are so deep in Advent and close to Christmas, we’ve decided to give you an early present!

Here’s a teaser of Part 2: (but, if you’re just impatient, click here)

 


In our first article in this series looked at product cost management software and how it fits in with the world of procurement software in the earlier years of development. This Part 2 focuses on the second wave of developments in PCM: feature-based automated 3-D CAD costing tools, advanced cost-accounting and control systems; the role of little and big data; and the future of product cost management.

To recap, it’s important to consider that purchasing has added a lot of new tools to what was mostly a relationship-focused discipline. These developments include:

  • Data-rich environments of spreadsheets, MRP and ERP systems
  • Supply chain management and supplier relationship management systems
  • Online auctions
  • Spend analytics tools/product cost management (PCM) software

And it’s important to recall our roadmap to this journey through time and technology, which is shown in Figure 1. Notice that the 3-D CAD development is the latest one. Let’s explore how this has developed and what it has to offer businesses today….

Curious?  Yes, you are.  To read the epic conclusion of the PCM softwares on the market today, what they can (and can’t do) and how they can generate impact for your company ,read more here!

 

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Dec 182019
 

Hiller Associates is pleased to announce a new article in SpendMatters.com! Spend Matters plucky founder, Jason Busch was having a conversation with our founder, Eric Arno Hiller, about the growth of the market of Product Cost Management software and the state of the art today.  Well, that is chicken soup to Eric’s soul.  It’s a TWO-part series, so read this one and look for the next very soon!

Here’s a teaser: (but, if you’re just impatient, click here)


A lot has happened in the world of procurement software in the last 20 years. Purchasing has added a lot of new tools to what was mostly a relationship-focused discipline. These developments include:

  • Data-rich environments of spreadsheets, MRP and ERP systems
  • Supply chain management and supplier relationship management systems
  • Online auctions
  • Spend analytics tools/product cost management (PCM) software

Although the relationship side of the business is just as important as ever (some might say more important), purchasing analytics are here to stay, and they continue to become more prevalent in the discipline. The same is true for product cost management tools and their offshoots of service cost management tools. In this series, I am going to discuss the evolution of these tools and the state of the art.

Our roadmap to this journey through time and technology is shown in Figure 1….

Curious?  Yes, you are.  To learn about what softwares are on the market today, what they can (and can’t do) and how they can generate impact for your company,read more here!

 

 

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Nov 042019
 

Image result for supply chain brain logo

Hiller Associates is pleased to announce its first article in SupplyChainBrain!  As usual, it’s on a most fascinating of topics… well at least to us:   Tariffs and their effects on your products.

Here’s a teaser: (but, if you’re just impatient, click here)


Total cost of ownership (TCO) was popularized by Gartner in the 1980s. The basic idea is that the value derived from a product involves more resources than what you pay the supplier.

TCO is essentially a consumer-facing concept, but another term, total cost of acquisition (TCA), has more of a supply-chain and procurement application. In the past, it was less important in the U.S., as the nation gravitated toward free-trade pacts such as the North American Free Trade Agreement (NAFTA). That has changed under the current administration. In addition, because of automation and the development of manufacturing sites in other countries, TCA is regaining importance in the U.S.

Today, a manufacturer might have multiple choices of suppliers within overwhelmingly complex supply chains. How does the modern purchasing professional sort out which option is best?

Let’s break it down to three steps:

  • What? Understand the supply-chain options strategically.
  • How much? Populate the numbers for each assumption tactically.
  • What does it mean? Quantify the total and understand where the costs are.

Etc…

Curious?  Yes, you are.  To learn how tariffs can impact your Total Cost of Acquisition / Ownership, read more here!

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Oct 172019
 

For the impatient:  To see the analysis of Illinois Football, CLICK HERE!

Download the analysis here:

==============================================================

Sometimes you just have to step away from helping clients with design-to-value teardowns and ideation and Product Cost Management to consider the less fortunate.  In this case, the less fortunate include our Managing Partner, Eric Arno Hiller, and his fellow alumni at the University of Illinois, Urbana-Champaign.   

Sure, it’s one of the greatest engineering schools in the universe (…or is it the “multiverse?”), has produced a large number of Nobel Prize Winners, and has respected alumni and programs in a plethora of disciplines.   But, let’s talk about what really matters to most people in the world of large American universities:  College Football.  Eric has done an analysis of Illinois Football and coaching.

According to Eric:

I have loosely followed Illinois football since I was a freshman in 1991, through my time recruiting many interns and full time people to Ford Motor Company as a young engineer, through being president of the Boston Illini Alumni Club, through moving to Chicago — the heart of Illini alums on earth.  

Until circa 2007, I veritably bled orange and blue.  This was due to my experiences with student leadership in the College of Engineering and personal experiences, far more than the sports.  But, after being friends with enough Wolverines and Buckeyes and Badgers, I really did get perplexed and irritated about what is really going on with Illini Football.   So, while visiting my college roommate, I was inspired to do a little analysis.

Eric wanted to answer the following questions:

  • Is Illini football performance really as bad as I perceive it to be?
  • Is this a new phenomena, since I became an Illini, or have my older Illini brethren struggled here as well?
  • Was Illinois ever good?
  • What coaches were the greatest in history?

Along the way, the data led Eric to some other interesting insights that he shares in with the graphic flair of a recovering engineer and recovering McKinsey consultant.   

To see the analysis of Illinois Football, CLICK HERE!

Download the analysis here:

Image result for university of Illinois football

Eric also started to think about what to do about the problems with which Illinois struggles, and tries to scratch the surface of a solution.   Find out what he says in the analysis!

(Spoiler alert!:   Don’t expect miracles — generating hundreds of millions in impact for clients with design-to-value, Product Cost Management, and great product management is in Eric’s wheelhouse.  Touchdowns on the gridiron, are a bit outside of it.)

 

 

 

 

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Oct 162019
 

OK, Hiller Associates is back in the saddle again!     And, we have a our latest article posted in: 

 

 

IndustryWeek.

Dullsville Just Got Interesting

by Eric Arno Hiller
 
The most boring parts of cost analytics are the difference between success and failure.

 “What does this mean?”

That’s an excellent question and one that a purchasing professional should be asking any time they receive a quote from a supplier or a cost analysis from their Product Cost Management team.  Sadly, however, many times, purchasing professionals don’t even vocalize this question to themselves, much less to their analytics teams, even after the analysis is presented. Instead, they just feel uneasy and uncertain about the validity of the cost analysis.  This is a dangerous position, because once the supplier smells that lack of confidence in a negotiation, it’s all over. … read more!

That’s just a teaser, as is this simplified diagram.

Curious?  Yes, you are.  To learn why everyone is confused about what your cost estimate means, after your team spent so much time calculating it, read more here!

 

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Nov 212017
 

Hello all!  

As some of you may know, I joined McKinsey & Company a little over two years ago as an expert in their Product Development Design-to-Value practice.  (Don’t tell anyone, but I do a lot of work for clients in the purchasing space, too!).

It’s been a whirlwind of a couple years, but I finally got some time to publish some new thought leadership.    I just did this on McKinsey Ops Extranet, sadly not here.  But, the good news is, you can join for FREE, so don’t be worried when you see you need to register.

Here’s the first.  Enjoy!  Oh, and may sure to 5-star my post if you read it and like it.  Thanks.

 

What should it cost? 

(Welcome to the standard costing party! What’s this all about?)

 

 

 

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Jun 052014
 

IW_LogoNEW ARTICLE in Industryweek.com by Hiller Associates

Synapsis:  No matter how badly you think you are pinned down in a pricing negotiation, there are always tools for leverage that can help you improve your position. Relative should costing is one of these powerful tools.

To read the article at Industryweek.com, click here.

Or, you can read the full article below

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Relative Cost Power – How to not know the cost of your products and win negotiations, anyway

With product cost accounting for 70 to 90% of every revenue dollar on the income statement, it’s not hard to understand why cost is such a big deal to many companies. In the last decade, there has been a renewed focus on the world of Product Cost Management, including techniques like Design for Manufacturing (DFM), Should-Costing, Spend Analytics, etc. Many of these techniques are used (or are intended to be used) *before* the sourcing phase of the Product Life Cycle. While procurement professionals should be involved up front in product design, a lot of the responsibility for success with these techniques will rest on the design engineering staff.

Regardless of whether your company is best-in-class in Design-To-Cost, or whether you have the most cost-oblivious design staff in the world, your designs must be eventually made or bought. With the dominance of outsourcing, it’s more difficult than ever to know what the should-cost of a product is? Purchasing agents are told that they should know the should-cost of products before they walk into a negotiation with a supplier. However, that is not easy, and the fact is:

Your supplier will typically know more about their costs than you do.

So, how do you precede in a negotiation where your supplier has more and better information? Are you completely at their mercy? And, what if your supplier holds oligopoly, or even monopoly, supplier power? Are you just a price taker?

ANSWER: No, you don’t have to be a price taker, at least in the case of buying multiple variants of a similar spend item.  Recently, I wrote a blog post about how the human brain does not like non-linearity, discontinuity, or non-monotonic functions. This is a fancy way of saying that people are very good at detecting pricing inconsistencies within multiple similar products.

This inconsistency is the key to being able to better control a negotiation, in which you really don’t know what the absolute cost of a product should be, or where you know the should-cost, but have little buyer power. Let’s explain this with an example:

Case Study in Relative Should-cost: Pick-up Truck Driveshafts

Hiller_Associates_Relative_Should_DriveshaftsIn the late nineties, I had the privilege of being the product development owner for the drivelines (axles and drive shafts) used in the full-size pick-up that was best-selling vehicle in the world for over 30 years. This truck made over 100% of the profit for my employer (making up for losses on other vehicle lines). I was very young and inexperienced at the time, so it was a great experience, but a big challenge.

Within the first few weeks in the assignment, I was told that it was time to negotiate the contract for the driveline commodity (over $450 million annually) for the upcoming 2004 vehicle. I was told that this was a very complex process, but that the purchasing group would lead it. However, my first meeting with our purchasing team lasted about 10 minutes… long enough for the purchasing team to say: “Oh, your supplier is *that* supplier? We don’t get involved with them. Have a nice day.” And, they walked out of the room.

After the shell shock of the experience wore off, my manager explained that our supplier was the former components division of our employer (the OEM) and that our CEO had desperately wanted to spin-off the component divisions from the OEM. To do this, our CEO had negotiated a deal with the powerful automotive union, agreeing that the union members would technically work for us (the OEM), but be leased to the newly spun-off supplier. If the OEM did not give enough business to the components supplier to keep the union members employed, the OEM was responsible for paying them a large portion of their wages, while they waited to be deployed somewhere else.

Effectively, this removed almost all negotiation power from us, the OEM. Therefore, our purchasing team had made a decision at the executive level to not participate in negotiations with this particular supplier. Instead, these negotiations were dumped into the laps of the product development team, with some support from finance.

Suppliers with Complete Supplier Power

The product development team had its own problems already. The marketing team were demanding much better performance and quality out of our parts. But, the finance team demanded that those parts be cheaper than the previous generation of parts! And now, we had an AWOL purchasing team. In terms of the old Porter’s Five Forces framework, our supplier had tremendous supplier power! What to do?

I certainly was not an expert in drivelines yet, but I had just completed a master’s thesis focused on product cost. So, I first reached out to the cost estimation team within the OEM. They helped us understand what the absolute cost might be for a driveshaft. We were also able to negotiate with the purchasing to do an “unofficial” price study with other driveline suppliers.

Our first negotiation with our supplier (the OEM’s former component divisions) was pleasant, but utterly futile. I excitedly explained what we thought the absolute part cost of these driveshaft parts should be, and hinted that we had quotes from other suppliers to prove it. Our supplier, being quite shrewd, politely explained why their product was, obviously, so much more valuable, combined with a tangible undercurrent of, “Well that’s nice that you have should-costs and quotes from other suppliers, but we really don’t care, because you have to use as a supplier regardless.”

Relative Should-Cost to the Rescue

Now what were we going to do? These lines of argumentation (absolute should-cost and competitive quoting) were not prevailing on the supplier. So I tried something different: Relative Should-Costing.

Hiller_Associates_Relative_Should_CostA driveshaft is complex in many ways, but in reality, it is a modular part design. It’s constructed mostly of the end yokes coupled with an extruded or seam-welded tube between those yolks. If we had a longer truck we simply extended a tube. (For technical safety reasons, we had three variants: a 1-piece steel driveshaft, 1-piece aluminum, and a 2-piece steel.)   In total, we had over 70 part numbers of these three designs, and we knew the price quote for each variant.

Using a spreadsheet, I simply estimated a reasonable cost for one driveshaft tube for each of the 3 variants. With this estimate, it was easy to calculate a per-inch cost of that tube. By subtracting, I knew what all the other parts in the driveshaft (e.g. end yokes) approximately cost. That was all I needed. I didn’t need to know what the absolute cost of each driveshaft should be.

I just needed to know what each similar part should cost RELATIVE to another part.

In the second negotiation, we politely questioned the supplier on their confidence in their pricing ability. They professed with great certainty that they knew how to price and stood by those prices. Then we coyly pulled out the part numbers for the three drive shafts for which I had estimated the absolute, and asked if they stood by those prices. They eagerly declared they stood by those prices. Gotcha!

At that point, we started asking how Part B that was 5 inches longer of extruded tube than Part A could cost $10.00 more than Part A, when the tube extension was only worth $0.30. The supplier was not sure and asked for time to investigate. We had several more meetings on the topic, but in the end, the supplier could not give any logical reason why their pricing for similar drive shafts varied in bizarrely non-linear ways.

The supplier reduced the cost of the entire driveshaft commodity by about 8%, resulting in about $35 million a year, straight to the bottom line of my employer, the OEM.

Should the discount have been bigger? Yes. Did my calculations show that the supplier should have given us more money? Yes. But, did we get a significant concession from a supplier who held every card in this negotiation? Yes we did!

In reality, the supplier still could have refused to reduce their costs. However, the point of these Relative Should-Cost negotiation techniques is to bring logic and facts to bear to increase leverage in a situation where you seemingly have no leverage.

The win occurred when the supplier just couldn’t answer why their own pricing was internally inconsistent with itself.

This is a good lesson for suppliers to learn, as well. When quoting a basket of similar parts, it’s wise to make sure that you understand your own pricing and reflect the underlying costs in a logical and linear way to your customer. This greatly reduces the risk of your customer casting doubts and driving your pricing down, perhaps unfairly.

Diagnostic vs. Leverage Tools and Absolute vs. Relative Should-Cost

The case study above is an example of the difference between using a Relative Should-Costing technique, versus an Absolute Dollar Should-Costing technique. If this sounds interesting to your company, you may want to read more in my previous article in Industryweek.com, Your Should-cost Number is Wrong, But It Doesn’t Matter. In this article, we talk further about using should-costing, not only as a diagnostic gage to tell you what the cost is, but as a tool for leverage to move the cost down.

Remember, no matter how badly you think you are pinned down in a pricing negotiation, there are always tools for leverage that can help you improve your position. Relative-Should costing is one of these powerful tools that should be in your tool box.

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May 142014
 

Have you ever walked into a dining room with several pictures and seen that one picture that is not hanging parallel to the floor? If you’re a recovering engineer like me, you feel an overwhelming urge to correct the problem. You just can’t be comfortable until the frame is in alignment… unless you find your molding or floor/ceiling are not parallel.   Then you have bigger problems!

Why does a slight misalignment (maybe just a couple degrees off bubble) set off instant and loud alarm bells in your brain? It’s because the human brain is very sensitive to two things:

  1. Linearity/symmetry
  2. Discontinuity (especially non-monotonic functions)

I was having a lively discussion the other day with a director of pricing at a Fortune 500 distributor.  We were talking about how this affects product pricing. For example, when you have a catalogue with millions of products, it can be very challenging to keep pricing consistent. Consider the figure to the right. The orange dots could be product offerings for electric motors, graphed by the price vs. a performance attribute, such as horsepower. We expect price to increase with performance. But what happens when you find the blue or green dots?   The brain says “that’s not right!”Hiller_Associates_Costing_Linearity

Now, there may be legitimate reasons for the negative or positive arbitrage.   Maybe there is a sale? Maybe there is an economy of scale on selling that particular model?  However, that brings us to the next challenge, pricing functions that are not monotonically increasing (i.e. they have a negative slope for at least one product model). This is a problem, because this is difficult for even economies of scale to overcome. And, the customer does not like it, because it makes the vendor look as if their pricing is capricious, which causes distrust.

Discontinuity in Product Costing

This happens in costing too. For example, although “sunk cost” is an important concept in capital investment, it can wreak havoc on product costing. If a certain machine is fully depreciated and now has a greatly reduced overhead rate assigned by the accounting department, this will likely confuse the purchasing or engineering folks using a Product Cost Management software. It will either cause them to distrust the costing software or your manual analysis or it will drive them to cost all the parts they can using that

This is yet another curse of the difference between the data relevance needs in order to perform good cost or pricing analysis versus the data reliability needs, over which accountants typically obsess. From an accounting point of view the depreciated resource is “free” (or highly discounted). However, from a costing viewpoint, the abilities of that machine will have to be replaced sooner or later. Worse, the distortion in the overhead rate will lead to underestimations of cost, and often, unpleasant surprises late in product development and sourcing.

What to do about non-linearity, discontinuity, and non-monotonic pricing/costing functions:

Hiller_Associates_Fix_it_or_feature_itYou have a couple of choices on how to resolve the geometric costing/pricing problems in the minds of your customers or colleagues:

  1. Remove them – the first solution is to correct the false arbitrage by fixing the pricing or costing data. For example, in the case of the machine that is fully depreciated, change the overhead rate back to reflect the cost at which a new machine with the same capability would depreciate.
  2. Highlight them – if the pricing or costing curve has an unexpected kink in it for a legitimate reason, then you should make everyone aware of this and use it to your advantage. For example, in the catalogue motor example, advertise the sale and let people know this is not natural or permanent!

A lot of mistakes in pricing or costing are difficult to notice without close inspection, but remember anything that violates the brains desire for smooth regularity will stick out like a sore thumb… or a good deal.

 

 

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Mar 202014
 

Hiller Associates posted the following article at ENGINEERING.COM yesterday.  You can read it there at this link, or just keep reading below!

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Another solid piton in the cliff of making product cost mainstream in CAD / PLM Products?

CATIA users can now get a faster and more effective way to design and source composites products with the highest profit by bringing the estimation ability closer to the designer’s native environment. Galorath Incorporated debuted its newest integration of SEER® for Manufacturing with the Dassault Systems 3DEXPERIENCE® Platform in CATIA at the JEC Composites conference in Paris. The new product is called the SEER Ply Cost Estimator.

Who is involved?

Hiller_Associates_Seer_Catia

Galorath Incorporated grew out of a consulting practice focused on product cost estimation, control, and reduction that began in the late 1970

s. Over the last 30 years, Galorath built their costing knowledge into the SEER suite of software products. SEER is one of the independent product cost estimating software companies.

Dassualt Systems is one of the “big 3” Product Lifecycle Management (PLM) companies in the world.

Hiller Associates spoke with Galorath CEO Dan Galorath, Vice President of Sales & Marketing Brian Glauser, and SEER for Manufacturing product lead Dr. Chris Rush and got a full product demo.

What does this integration do?

The integration allows users of CATIA to use SEER’s costing software for composite materials within the CATIA environment. In CATIA, the engineer designs a lay-up for a composite part, generating a Ply Table (a critical design artifact for composite parts that specifies material, geometry, and some manufacturing info). That activates the integrated SEER Ply Cost Estimator so that the designer (or the cost engineer or purchasing person aiding him) can set up more part-specific costing choices and preferences within the CATIA environment.

When ready, the user pushes the cost analysis button. The information is processed by SEER Ply Cost Estimator which sends the ply table data and other information to the interfacing SEER-MFG software to compute cost. The cost data is returned and presented to the user, once again within a native CATIA screen.

How broad is the capability?

Click to ENLARGE!

Click to ENLARGE!

Currently, the integration of SEER is applicable for parts made of composite materials. It’s a strong starting point for the integration partnership because SEER has a long experience in the field of costing composites, working with companies in the defense and aerospace verticals. Composites are also becoming more mainstream in other industries, such as automotive and consumer products. Galorath has been a major player in the US Government’s Composites Affordability Initiative (CAI), a 50/50 government/industry funded consortium including Boeing, Lockheed and Northrop Grumman that was formed to drive down the costs of composites. Galorath has also worked with Airbus in the area of composites parts costing.

Galorath’s Brian Glauser says that the SEER Ply Cost Estimator has hundreds of man-years invested, much from previous work with CAI and with aerospace companies that resulted in several of the modules already in the SEER-MFG standalone product.

The first version of the SEER Ply Cost Estimator handles many composites manufacturing processes, materials, concepts of complexity, and both variable and tooling costs. However, it does not yet directly cost the assembly of one part to another.

The initial integration will be to CATIA v5, but SEER and CATIA have signed a v6 agreement as well. That integration will follow later.

Galorath (and likely Dassault) are hoping that the SEER Ply Cost Estimator will be well received by customers and help drive many product cost benefits. If this happens, there may be demand from Dassualt’s end customers not only to improve the SEER Ply Cost Estimator, but to expand the SEER/CATIA integration to other manufacturing processes covered in SEER’s stand-alone software products such as machining, plastics, sheet metal and assembly processes.

What does it mean for Functional Level Groups?

Philippe Laufer, the CEO of CATIA was quoted saying :

“Using Galorath’s SEER for Manufacturing in CATIA…will help companies perform early trade-off analysis on the use of various materials and composites processes before manufacturing even takes place.”

Well, that has been one of the goals in Product Cost Management for a long time. If your company uses composites, the tool has the following possibilities:

  • Engineering – identify which design choices are driving cost and by how much
  • Purchasing/Manufacturing – get an early warning of what to expect from suppliers before asking for quotes or estimates (should-cost)
  • Cost Engineering –focal point for the cross-functional discussion about cost to drive participation, especially from engineering

It’s important to realize that this integration will have its limitations, as with any costing product. First, the current integration applies only to composites. While expensive, composites are only one type of part on the Bill of Material (BOM). You will have to go beyond the current integration of SEER/CATIA to cost the full BOM, perhaps to SEER’s standalone costing product or to those of its competitors.

Second, remember that cost is far harder to “accurately” estimate than many physical performance characteristics. While meeting an absolute cost target is important, even more important are the following:

  1. Continuous Design Cost Improvement – If your company consistently designs lower cost products because you have superior cost estimation information, you WILL beat your competitors.
  2. Correct Cost and Margin Negotiation – If your company is better at negotiating quotes because it can give suppliers a better understanding of what it will cost them to make your part and you can negotiate a margin that is not too high, but adequate to keep your suppliers healthy, you WILL beat your competitors1.

What does it mean for the C-Level?

Philippe Laufer of CATIA also says:

“This [the SEER Composites integration] leads to finding out the most efficient way of manufacturing a product while meeting cost, performance, functionality, and appearance requirements.”

The C-suite doesn’t really care about composites or ply tables in and of themselves, but it does care about revenue and profit. Of course every well-marketed product will claim to improve these metrics. Regarding product cost, the good news is that Galorath and Dassault are aiming at a big target. Companies that use a lot of composites can have very high costs. For example, Boeing and Airbus have Cost of Goods Sold of 84.6% and 85.5% and Earnings before Tax of 7.2 and 3.6%, respectively2. Those COGS figures are big targets on top of a highly leveraged COGS/Profit ratio.

What does it mean for Product Cost Management becoming mainstream in the enterprise software stack?

We asked Dan Galorath how long it would be before Product Cost Management was as much of the PLM ecosystem as finite element, manufacturing simulation, or environmental compliance. He replied:

“Cost estimation software will never be on every designer’s workstation, but I don’t believe that is what it means for Product Cost Management to be considered ‘mainstream.’ It’s not fully mainstream yet, but a greater need is being driven by outsourcing and the tight business environment. The procurement folks can’t only rely on internal manufacturing knowledge like they used to. They need tools like SEER to fill the gap and move the cost knowledge base forward.”

We agree with Mr. Galorath. This is another step, another piton to secure Product Cost Management onto the PLM cliff, as PCM continues to climb this steep hill.

This is the first integration point between independent Product Cost Management software companies and the PLM/ERP world since September 2012, when Siemens PLM purchased Tsetinis Perfect Costing3. PTC has built some level of cost tracking ability into Windchill, and Solidworks (owned by Dassault) has developed the first couple versions of a costing calculation module for their product.

There is still a lot of ground to cover. There are quite a few independent product cost management software tools that have costing intellectual property that can accelerate the process, especially if the big PLM companies acquire them or partner with them. When that will happen is anybody’s guess, but for now it looks like CATIA users, at least, have a viable solution for composites costing… and maybe more in the future.

1 For more information, see the Hiller Associates Industry Week Article: Your Should-cost Number is Wrong, But It Doesn’t Matter

2 Per www.morningstar.com, trailing 12 months COGS, 3/13/2014

3 Siemens buys Perfect Costing Solutions (Tsetinis), Hiller Associates, September 2012

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Mar 182014
 

 

If you are in the New York area and interested in product profit, you should attend the DFM Summit which is THIS THURSDAY MARCH 20?  The event includes sessions on distributed manufacturing, Design-to-Cost, Industrial Design, and networking.

 

Design-to-Cost Panel

The design-to-cost panel will include the following panelists:

  • Jon Hirschtick is the founder and Chairman of Onshape, developing new not-yet-announced products for the CAD/CAM/CAE/PLM market. Previously he founded and led SolidWorks.
  • Jon Washington is the founder of The Innovation Garage, a business innovation firm that partners with its clients in the design of product, process, service, and supply chain solutions.
  • Ben Gebhardt is a co-founder of Refactory, making hardware easy. He was the lead electrical engineer on the Beats By Dre team for all of 2012 until spring 2013.
  • Eric Arno Hiller is the principal of Hiller Associates and one of the pioneers in Product Cost Management (PCM). Hiller co-founded technology companies aPriori and End Around.

To read more about the panelists and the subjects to be covered read Designers need to be responsible for cost by conference organizer Peter Verkooijen.

Hope to see you there!

Register Here for the DFM Summit.

 

 

 

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