Design-to-cost tool raises dividends for aerial platform maker JLG

JLG Industries is a global manufacturer of design-to-order forklifts and mobile aerial work platforms. No longer relying on complete vertical integration of its design/production process, the McConnellsburg, Pa.-based company sources parts from multiple suppliers for assembly of orders to customer requirements.

02/01/2008




"A part will cost least when it’s most closely aligned with the parts supplier’s production process."

—Wayne MacDonald,
senior VP of engineering, JLG Industries

JLG Industries is a global manufacturer of design-to-order forklifts and mobile aerial work platforms. No longer relying on complete vertical integration of its design/production process, the McConnellsburg, Pa.-based company sources parts from multiple suppliers for assembly of orders to customer requirements.

Until recently, when initial designs proved too costly, lengthy back-and-forth iterations with part suppliers were issued to create new part designs and secure supplier quotes that met constraints. That process was eliminated when JLG deployed a design-based enterprise cost management system from aPriori .

“We wanted to avoid a process that was taking much longer than it did when design and manufacturing were in the same building,” says Wayne MacDonald, JLG's senior VP of engineering. “When we weren't happy with a price quote, we'd either have to redesign parts and get new quotes from our supplier, or find a new supplier. It took weeks. By that time the design engineer had moved on and was involved in something else. Now with the aPriori tool, when we're finished with a design, we're finished.”

The aPriori Enterprise Cost Management software determines costs for manufactured parts directly from a CAD model, factoring in material and production costs based on virtual production environment (VPE) models created and stored within the system.

“A part will cost least when it's most closely aligned with the parts supplier's production process,” says MacDonald. “By optimizing design to be in sync with the process, we can achieve the lowest cost.”

JLG also uses the software to review and improve the design for parts that are already in production.

“Better yet is evaluating current part prices and uncovering suppliers' prices that aren't in line with what they should be,” MacDonald says. “It provides you with the information you need to get a better price.”

JLG first implemented the aPriori Enterprise Cost Management system in late 2006. In late 2007, it upgraded to newly released aPriori V5.5 that with more functionality—most significantly, support for sand casting of designed parts. The new version supports a variety of sand casting mold methods and discrete subprocesses, including melting, core making, pouring, cooling/solidification, shake-out, cleaning, finishing, and in-line inspection.

“In small volumes, we tend to use parts that can be fabricated, but as volume grows, casting becomes more economical,” says MacDonald. “Support for sand casting is a big enhancement for us.”

JLG is benefiting from aPriori's system via an accelerated redesign process, and better price quotes from suppliers for existing parts that effectively reduce cost of goods sold. Consequently, meeting customer requirements and profits are both on the upswing.





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Prescriptive maintenance; Hannover Messe 2017 recap; Reduce welding errors
Safety standards and electrical test instruments; Product of the Year winners; Easy and safe electrical design
Safer human-robot collaboration; 2017 Maintenance Survey; Digital Training; Converting your lighting system
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
Automation modernization; Predictive analytics enable open connectivity; System integration success; Automation turns home brewer into brew house
Commissioning electrical systems; Designing emergency and standby generator systems; Paralleling switchgear generator systems
Natural gas for tomorrow's fleets; Colleges and universities moving to CHP; Power and steam and frozen foods

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
Compressed air plays a vital role in most manufacturing plants, and availability of compressed air is crucial to a wide variety of operations.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me