Innovative Design-to-Cost Program Unlocks Massive Savings for Wuzheng [Video]

The Wuzheng Group (Shandong Wuzheng Group Co. Ltd) is an established automotive and agricultural industry leader in China with annual world-wide sales of more than $2.3 billion USD.

It is one of China’s largest automotive and agricultural operations designing, building, and selling agricultural equipment, light-to-medium duty trucks, and three-wheel farm vehicles in China and exporting them to 43 countries around the world.

Market Challenges Drive Need for Greater Cost Controls

The market for agricultural vehicles in China peaked in 2014 when their domestic economy was booming.  Over the past few years, that market has started to contract and the need for greater cost controls to maintain profitability became more evident.  In addition to a challenging sales environment, other market challenges faced by Wuzheng include:

  • Wages increasing across all skilled workers
  • Weight and environmental regulations forcing parts to be redesigned
  • Technological maturity increases need for cost accuracy
  • Chinese supply chain increasingly utilized for advanced products

Leveraging Technology to Improve Efficiency

As the market began to shift, Wuzheng was already beginning a digital transformation of their business, investing in ERP, PLM and CAE tools to help them address the rising need for improved efficiency in their business.  Their engineering teams became very skilled and adept at using simulation tools in the early stages of product design to optimize form, fit and function.

At the same time, they also actively began an active search for “cost prediction” software.  Wuzheng’s goal was to achieve a better understanding of the cost implications of design and manufacturing alternatives and optimize product cost early in the design lifecycle.

The search team evaluated every major commercial product cost management (PCM) tool on the market, and ultimately chose aPriori to be their partner to help drive down costs in value engineering and product engineering programs.

Wuzheng selected aPriori as their partner and technology platform for the following reasons:

  • Direct, real-time costing of Siemens NX CAD models
  • Most robust cost methodology across large variety of manufacturing processes
  • Mature Graphical UI and comprehensive reporting
  • Ability to breakdown cost on outsourced processes

Early Results Drive Millions in Savings

Wuzheng was able to quickly implement the software technology and with the help of aPriori’s partner RAINFE and realize big savings on a number of redesign projects within the first 6 months.  In the short video below, Mr. Smith Thepvongs, VP of International Business describes these savings in a little more detail.

Want to Learn More?Forge a New Path to Profitability - an aPriori eBook for the Industrial Machinery Industry

Watch the complete video of this case study (26 min) in our Resource Hub.

And download our new eBook “Forge a New Path to Profitability” to learn about all the ways that your company could leverage product cost management technology and expert services from aPriori.



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