Fabio Perini: Success Story
Cost as a target, performance as a must
Industry: Machinery for paper making and tissue converting Headquarters: Lucca, Italy Employees: 1.000
- More precise and reliable estimate
- Faster in cost prediction
- Possibility of sharing data with other enterprise applications
Fabio Perini Spa is a leader in the design and manufacture of industrial machinery for the processing and packaging of tissue paper. Founded in 1966, Fabio Perini has become a multinational company, part of the German Group Körber, thanks to a cutting-edge Research&Development department, several patents, and the introduction of innovative technologies.
The company needs
Being a leader in a global and a highly technological market is a big challenge. For this reason, Fabio Perini has always been looking to the future through continuous research of innovative technologies. Nobody has never spoken about simple machines, but about authentic solutions designed to meet the specific needs of customers from all over the world. On the other hand, Fabio Perini strongly believes that cost performance is one of the two successful factors, as much as meetings technical performances: the constant focus and awareness on the reduction and cost optimization from the earliest stages of design are essential to ensure profit margins for the company. Developing product according to Cost/Effectiveness view is mandatory to maximize efforts and ensure the success of the products on the market. Today there are several figures that contribute to cost management in the company. Each one has different goals, methods, and details level:
- Development Engineering team: has to develop products with optimized BOM (mechanical, electrical, fluidic) to satisfy Marketing performances and Target Cost.
- Purchasing: has to evaluate suppliers in a clear scenario and has the commitment to share supplier’s cost saving indication with the development team.
- Cost&Estimating team: has the commitment to calculate the product cost starting from single component’s production cost up to the assembly to complete and test the product since the development phase.
As consequence of its beliefs, Fabio Perini has its own component/machine cost estimating team since several years (2000) and improves continuously capacity and accuracy of its results. The department starts to equip themselves with increasingly powerful tools, starting from Excel files up to customized software that is integrated into the ERP system. The latter, however, require manual insertion of all data necessary to attach a standard cost to each product. According to this traditional approach, it is essential, in fact, reading from the drawings or the 3D model the geometric features to manually translate them into operations with time-consuming activities.
Today the use of 3D CAD models and the opportunity to have new software system which can estimate manufacturing cost directly from the 3D drawings has definitely opened new interesting scenarios in Fabio Perini.
- Optimization of the costing process The availability of this new software helps Estimating team to reduce the workload in evaluating very complex components and structures. How? LeanCOST offers the possibility to automatically identify the product parameters by importing the geometry directly from the 3D model.
- Be faster in cost prediction The availability of this new software helps Estimating team to reduce the workload in evaluating very complex components and structures. How? LeanCOST has a simplified Wizard interface designed for the Design Department. With few clicks, you can understand in just a few minutes the cost implications of different design decisions, changing the parameters such as roughness, tolerance, quantity, and material.
- Simulation of costs according to the quantity and calculation of the “Economic Order Quantity”. By accessing the LeanCOST repository file, the Purchasing Department can get important details of the cycles and make a fact-based negotiation with suppliers, considering different production scenarios in the analysis of the cost. How? LeanCOST has specific features designed for the world of Purchasing and it is possible to simulate different scenarios useful to have a more productive conversation with suppliers around the price of outsourced parts.
- Export of data to other business systems Since LeanCOST has been integrated into Fabio Perini ERP system, it does not change any process flow. How? LeanCOST exports the calculated data and include them within the enterprise applications. The files created by LeanCOST may be, for example, attached to the product information, so as to increase the company’s know-how.
Companies like Fabio Perini that continue to be successful, despite the many challenges, are companies that should manage and control product costs across their organization through the use of innovative technological tools.