aPriori Case Studies Leveraging Manufacturing Simulation for Enhanced Target Costing: A Jabil Case Study

Edit This Case Study Record

	Leveraging Manufacturing Simulation for Enhanced Target Costing: A Jabil Case Study aPriori

Leveraging Manufacturing Simulation for Enhanced Target Costing: A Jabil Case Study

aPriori

Technology Category	Analytics & Modeling - Digital Twin / Simulation Functional Applications - Manufacturing Execution Systems (MES)
Applicable Industries	Cement Life Sciences
Applicable Functions	Logistics & Transportation Product Research & Development
Use Cases	Additive Manufacturing Manufacturing Process Simulation
Challenge	Jabil, a manufacturing services company with 238,000 employees and a revenue of $34.5 billion, faced a significant challenge in streamlining target costing and improving communication between its design and manufacturing teams. The lack of a clear method of communication between these two teams often led to inefficiencies in the product development process. Each team was responsible for target costing measures of the products they were designing and building, but without a shared platform for communication, meeting or beating company target cost goals was a daunting task. The challenge was to find a solution that would not only streamline target costing but also foster seamless collaboration between the design and manufacturing teams. Read More
About Customer	Jabil is a leading manufacturing services company with a global workforce of 238,000 employees. The company operates in a highly competitive industry where efficient product development and cost management are critical to success. Jabil's revenue stands at $34.5 billion, reflecting its significant market presence. The company is committed to innovation and continuous improvement, seeking out advanced technologies and methodologies to enhance its operations. Jabil's adoption of aPriori's target costing simulation software is a testament to its forward-thinking approach and its commitment to streamlining processes, improving collaboration, and enhancing profitability. Read More
Solution	Jabil adopted aPriori's target costing simulation software to address its challenges. This software enabled the company to set a target cost for a product before starting production, with the aim of producing the product at or below the target cost. The software helped Jabil understand all the costs involved in making the product, including materials, labor, and overhead. It also allowed the company to work backwards to price its product profitably. aPriori's software enabled Jabil to build multiple digital factories for its suppliers, allowing the company to see in real time how design changes would impact target costs. The software also scanned 3D CAD models to identify material and geometry issues that could drive up product costs. This allowed even inexperienced designers to identify design features that unnecessarily drove requirements for additional manufacturing operations. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Digital Twin / Simulation

Functional Applications - Manufacturing Execution Systems (MES)

Applicable Industries

Cement

Life Sciences

Applicable Functions

Logistics & Transportation

Product Research & Development

Use Cases

Additive Manufacturing

Manufacturing Process Simulation

Challenge

Jabil, a manufacturing services company with 238,000 employees and a revenue of $34.5 billion, faced a significant challenge in streamlining target costing and improving communication between its design and manufacturing teams. The lack of a clear method of communication between these two teams often led to inefficiencies in the product development process. Each team was responsible for target costing measures of the products they were designing and building, but without a shared platform for communication, meeting or beating company target cost goals was a daunting task. The challenge was to find a solution that would not only streamline target costing but also foster seamless collaboration between the design and manufacturing teams.

About Customer

Jabil is a leading manufacturing services company with a global workforce of 238,000 employees. The company operates in a highly competitive industry where efficient product development and cost management are critical to success. Jabil's revenue stands at $34.5 billion, reflecting its significant market presence. The company is committed to innovation and continuous improvement, seeking out advanced technologies and methodologies to enhance its operations. Jabil's adoption of aPriori's target costing simulation software is a testament to its forward-thinking approach and its commitment to streamlining processes, improving collaboration, and enhancing profitability.

Solution

Jabil adopted aPriori's target costing simulation software to address its challenges. This software enabled the company to set a target cost for a product before starting production, with the aim of producing the product at or below the target cost. The software helped Jabil understand all the costs involved in making the product, including materials, labor, and overhead. It also allowed the company to work backwards to price its product profitably. aPriori's software enabled Jabil to build multiple digital factories for its suppliers, allowing the company to see in real time how design changes would impact target costs. The software also scanned 3D CAD models to identify material and geometry issues that could drive up product costs. This allowed even inexperienced designers to identify design features that unnecessarily drove requirements for additional manufacturing operations.

Impact #1	The adoption of aPriori's target costing simulation software has led to a transformation in the way Jabil's designers and manufacturers collaborate. The software has not only streamlined the target costing process but also fostered seamless collaboration between the design and manufacturing teams. This has resulted in a company-wide cost-awareness culture that everyone can rally behind. The software's ability to identify design features that unnecessarily drive requirements for additional manufacturing operations has been particularly beneficial. It has also enabled Jabil to uncover why a design is returning higher bids from supply chain partners than expected, leading to collaborative discussions about inefficiencies and potential overpayments. Overall, the use of aPriori's software has enhanced Jabil's operational efficiency and profitability.

Impact #1

The adoption of aPriori's target costing simulation software has led to a transformation in the way Jabil's designers and manufacturers collaborate. The software has not only streamlined the target costing process but also fostered seamless collaboration between the design and manufacturing teams. This has resulted in a company-wide cost-awareness culture that everyone can rally behind. The software's ability to identify design features that unnecessarily drive requirements for additional manufacturing operations has been particularly beneficial. It has also enabled Jabil to uncover why a design is returning higher bids from supply chain partners than expected, leading to collaborative discussions about inefficiencies and potential overpayments. Overall, the use of aPriori's software has enhanced Jabil's operational efficiency and profitability.

Benefit #1	Significant savings for the company through improved collaboration and streamlined target costing
Benefit #2	Reduction in time and resources spent on multiple redesigns and quotes
Benefit #3	Faster time to market due to early identification of manufacturing issues

Benefit #1

Significant savings for the company through improved collaboration and streamlined target costing

Benefit #2

Reduction in time and resources spent on multiple redesigns and quotes

Benefit #3

Faster time to market due to early identification of manufacturing issues

Download PDF Version

Overview

Leveraging Manufacturing Simulation for Enhanced Target Costing: A Jabil Case Study

Operational Impact

Quantitative Benefit