1. Myles Peyton, Sales Director Costing without Complexity
25 June 2012
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2. www.apriori.com
Cost Challenges are Intensifying
 Constantly growing volume of  Predicting costs in the face of
components to cost volatile material markets is hard!
 Considering cost for multiple  Cost of Engineering Change
early-stage design ideas Orders are difficult to accurately
 Government and safety predict
regulations are driving product  Cost reduction goals becoming
cost increases that need to be more challenging to achieve;
offset to avoid price increases finding the “needle in a hay stack”
 Need to find new ways optimize is time intensive
cost of tooling
 Complex global manufacturing &
sourcing strategies
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With aPriori you can do amazing things
Go from a
3D Solid CAD Model…
…to a detailed cost estimate
in seconds
2 © 2011 aPriori – Confidential, all rights reserved.

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With aPriori you can do amazing things
Calculate
detailed Assembly cost
roll-ups…
…in seconds
3 © 2011 aPriori – Confidential, all rights reserved.

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aPriori Value Proposition
 Prevent costs from being
designed in to new products
Immediate Impact & Long-Term Value  Launch new products at or
below target costs
Maximize cost
 Identify where you are
reductions in
overpaying suppliers for re-design projects
Savings Realized
production parts
 Re-quote, re-route, re- Reduce the amount of
bid to get lower prices re-design work required
Negotiate optimal after product launches
pricing on new
parts and products
Implementation Year 1 Year 2 Year 3
■ Sourcing / Supply Chain
■ Re-Design
■ NPI
4 © 2011 aPriori – Confidential, all rights reserved.

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aPriori Customers Actual aPriori Results
• AGCO Corporation
• ASML
• Bentley 5
• Bissell
• Caterpillar
• CNH Confirmed savings of $668,109 (2.5% of spend) in 5 weeks
• Cummins
• Diebold
• Excel Industries Confirmed savings of €245k (13% of spend) in 4 weeks
• Exmark / Toro
• Ford Motor Company
• Gardner Denver Confirmed savings of $300k (5.3% of spend) in 3 weeks
• Intelligent Energy
• Iveco
• John Deere Confirmed saving of $800K+ in 1st year of use for NPI and
• MacDon Industries
• Manitowoc Foodservice
VA/VE; Tracking ~$2.4M in annual cost avoidance
• NACCO Materials Handling Group
• NCR Corporation
• Paccar
Reduced time-to-market for NPI by 20% by reducing the
• Polaris time creating cost estimates and obtaining quotes
• Pitney Bowes
• Tecumseh Products
from suppliers
• Thermo King (Ingersoll Rand)
• Thomas & Betts
• ThyssenKrupp Elevator
Reduced tooling cost by 50% by using visibility to cost to
• Toyota material Handling make better design decisions
• Schindler Elevators
• Sertec
• SFI Fabrication
• Zebra Technologies
* Partial List of Customers
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aPriori Customers
• AGCO Corporation
• ASML
• Bentley Dave Longren
• Bissell Vice President and Chief
• Caterpillar Technology Officer
• CNH
• Cummins
Polaris Industries
• Diebold
• Excel Industries
• Exmark / Toro
• Ford Motor Company
• Gardner Denver
• Intelligent Energy
• Iveco
• John Deere
• MacDon Industries
• Manitowoc Foodservice Garry Ball
• NACCO Materials Handling Group
• NCR Corporation
Senior VP of
• Paccar Worldwide Engineering
• Polaris AGCO Corporation
• Pitney Bowes
• Tecumseh Products
• Thermo King (Ingersoll Rand)
• Thomas & Betts
• ThyssenKrupp Elevator
• Toyota material Handling
• Schindler Elevators
• Sertec
• SFI Fabrication
• Zebra Technologies
* Partial List of Customers
6 © 2011 aPriori – Confidential, all rights reserved.

8. www.apriori.com
Case Study: Value Engineering & NPI
$1.8B Manufacturer of personal recreation vehicles
Challenge Solution
No visibility to cost during product Corporate rollout of aPriori to inform
development cycle decisions on new and current products
Looking for tools to help control costs
in highly competitive marketplace
Results
• $821,000 product cost savings reported in first year of use
• Cost avoidance estimated at $200,000 per month
• Potential savings over 3 years of contract > $7M and 7:1 ROI
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Cost Challenges We Address
Research & Development New Product Initiatives
• Cost Components w/o • Designing-to-Cost & Meeting Targets
CAD Model • Shortening Overall NPI Lifecycle
• Tracking Total Product Costs (BOMs)
Manufacturing Value Analysis/Value Engineering
• Developing Time Standards • Reducing Current Product Costs
• Capital Asset Justification • Costing Engineering Change Order
• Identifying Outliers and Analyzing
Components for Cost Reductions
Sourcing Cost Engineering
• Developing Should Cost • Negotiating with • Estimating Costs for NPI • Negotiating with
Analyses Suppliers Projects Suppliers
• Analyzing Make vs. Buy • Requesting & • Analyzing Make vs. Buy • Creating Cost
Evaluating Supplier Models *
• Identifying Outliers and Quotes* • Identifying Outliers and
Analyzing Components for Analyzing Components for
Cost Reductions Cost Reductions
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Usage Summary
1. Purchasing can identify where they are being overcharged by their suppliers and
have a fact-based negotiation with suppliers.
2. VAVE/Cost-Out activities to trim cost from currently manufactured parts -> for
conducting what-if scenarios by making changes to geometry, material, quantity,
process, routing, etc. To identify savings opportunities.
3. New Product Introduction – Engineers get real-time cost information as geometric
changes are made allowing for least-cost designs to be generated at the beginning of
the product life-cycle -> for engineering cost out of the product and avoid
unnecessary cost from the beginning!
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11. www.apriori.com
Thank you
Myles Peyton, Sales Director
June 25, 2012
10 © 2011 aPriori – Confidential, all rights reserved.