aPriori, the leading provider of automated product cost management (PCM) software solutions, has been selected by Rafael Advanced Defense Systems, a leading worldwide manufacturer and provider of military defense products and related services. Rafael will start their implementation of aPriori at their design and engineering center in Haifa, and will be growing their deployment across their enterprise over the course of the multi-year program.
Rafael is one of Israel's largest defense companies, with 2016 sales of $2,166 million, an order backlog of $5,651 million and a net profit of $123 million. They develop and manufacture advanced defense systems for the Israeli Defense Forces and the defense establishment, as well as for foreign customers around the world. Rafael offers its customers a diversified array of innovative solutions at the leading edge of global technology, from underwater systems through naval, ground, and air superiority systems to space systems.
"Rafael has several key objectives they wish to accomplish through this strategic partnership with aPriori," said Ofer Abraham, Project Manager in R&D and Engineering Division. "Our aim is to reduce cost driven changes late in the design cycle by identifying cost-drivers in the early concept and preliminary detailed design stages. We also work with a large network of suppliers, and we will be using aPriori to generate cost estimates with detailed manufacturing data that allows us to negotiate more cost effective agreements with these suppliers."
aPriori's product cost management platform will provide Rafael's design and sourcing teams with real-time cost estimates on parts and products in design. The software leverages CAD and intelligent cost models to quickly determine feasible manufacturing methods and product costs while generating detailed manufacturing analysis and cost estimates that quantify the impact of changes to product design, materials, manufacturing processes, volumes and location in real time. aPriori will also provide the Rafael procurement and sourcing teams with regional cost benchmarks based on the company's specific product requirements, enabling it to collaborate more effectively with its suppliers.
"aPriori product cost management software takes the guess work out of what a new product design will cost when it gets into production, or what a sourced part should cost from a supplier in a particular region," said Stephanie Feraday, President and CEO of aPriori. "What our customers say most often is that our ability to generate an accurate, detailed cost estimate in real-time not only helps them identify and mitigate cost drivers early in the process, but it helps them accelerate time to market by eliminating the latency they historically see with their manual cost estimating systems."