Customer Success Story

BLM Group: Success Story

Now faster and more precise with LeanCOST

COMPANY PROFILE

Industry: Machine tools for tube processing                   Headquarters: Cantù (Como), Italy                               Employees: 500

BENEFITS

  • Faster product cost estimation
  • Support for “make or buy” decisions
  • Overall savings of manufacturing and purchasing costs

The BLM Group designs and produces machines and systems for the whole tube processing. With thousands of applications all over the world and more than fifty years of experience, the main company BLM SPA offers a wide range of customized services and solutions. Furthermore, it is strongly committed to innovation with a solid experience and a technical expertise.

The needs

BLM was looking for a tool enabling an objective and precise analysis of the economic feasibility of different design alternatives. In particular, the company needed to rationalize its product cost estimation process to obtain precise estimates in a fast way. Therefore, BLM was asking for a tool to support the industrial engineers to be more precise and more accurate on the basis of objective parameters. The final aim is to making estimation completely independent from the subjectivity of the specific person who manages the manufacturing costs.

The benefits

Today, the product cost estimation process in BLM is a structured and standardized process with LeanCOST. Data about raw materials and machines are shared among the different business units and the company know-how is formalized to enhance the overall product cost estimation process. Furthermore, LeanCOST helps BLM to evaluate the economic feasibility of different technological alternatives in a rapid and easy way to quickly decide of outsourcing or making components internally (“make or buy”) based on objective parameters. If outsourcing is more convenient, it is possible to carry out a simpler negotiation thanks to the detailed technical estimates that are automatically generated by LeanCOST.

LeanCOST allows a considerable time reduction during the selection of the best production technology. Thanks to the ADVANCED interface, designed for technologists, we can reach an high level of detail and a full control during the product cost estimation process Cost Analysts Dept. – BLM

With LeanCOST BLM achieved important results:

  • Reduction of time spent in components cost estimation for manufacturing/purchasing (-30%)
  • Reduction of manufacturing costs thanks to a higher awareness about cost from the earliest design stages (5-7% on average, up to 30% in critical item)
  • Reduction of purchasing costs (30% per year)
  • Increase of accuracy in product cost estimation (up to 50%)
  • Reduction of negotiation time with suppliers (on average, from 7 days to just one day)

LeanCOST allows having the full control over products and processes costs, guiding the users during product cost and time estimation of single components or complex assemblies, and supporting the evaluation of different manufacturing technologies with respect to the quantity to be produced.