Case Study: Danfoss achieves product cost optimization and enterprise-wide digital manufacturing with aPriori

How to Implement a Digital Manufacturing Solution

Danfoss, a global engineering company focused on digitalization, electrification and sustainable infrastructure, faced mounting pressure to “do more with less” as rising costs and intense competition made product-cost control a business imperative. The company needed better ways to analyze whether parts were sourced or manufactured at the right prices, optimize designs for cost versus performance, and prioritize products where margins were slipping.

Danfoss implemented aPriori digital manufacturing simulation software, created a corporate product-cost management function, and hired Cost and Value Engineers to drive cross-functional programs. Using three repeatable processes—costing out existing products, embedding cost targets in new product development, and supplying should-cost data for procurement negotiations—the company completed dozens of programs worldwide, built a strong pipeline of cost-reduction ideas, shortened time-to-savings by addressing costs earlier in the lifecycle, and empowered buyers with facts for better supplier negotiations.

Danfoss