Leveraging Manufacturing Simulation for Enhanced Target Costing: A Jabil Case Study
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
About The 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.
The 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.
The 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.
Operational Impact
Quantitative Benefit
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