Released on = July 24, 2006, 2:50 pm

Press Release Author = John Busa

Industry = Software

Press Release Summary = Predictive Cost Assessments versus Activity Based Costing

Press Release Body = According to Frank Azzolino, President & CEO of aPriori
Technologies (www.apriori.com), "There are fundamental differences in the way that
decisions are made in the NPI process, (in the process that takes products from the
conceptual design phase all the way through production delivery), by using aPriori's
predictive cost assessments vs. more traditional Activity Based Costing (ABC)
methods. ABC applies methods where costs are allocated to production products
"after the fact", (after they have been designed, planned, sourced, and produced.)"

During the NPI process many decisions are being made which directly influence or
affect product costs. During the conceptual design and engineering development
phase of NPI, fundamental product decisions are being made in terms of product form,
fit, and function. Typically, more than 60% of a product's cost is committed early
in the design process based on these design decisions, the remaining costs being
determined by planning and sourcing decisions.


Without the real time predictive cost information provided by the aPriori cost
management software platform, these cost relevant decisions are made in a cost
knowledge vacuum, i.e. being made without either up-to-date or accurate cost
information, or without any information whatsoever. Without aPriori's real-time
predictive cost assessments, the only recourse manufacturers have is to use
historical information based on previous products or determine the costs of the
current product after it has been in product for awhile, and then allocate those
costs across the different activities that occurred during the NPI process.
Unfortunately, once the product is in production, it may be very difficult and
expensive to make these changes.

aPriori's Cost Management Software Platform enables manufacturers to better
understand product cost decisions early and throughout the product lifecycle.
aPriori's Cost Management Platform empowers manufacturers to lower cost-of-goods
sold (COGS), provides real-time visibility to "cost-critical" decision information,
and builds critical cost knowledge to go on the business "offensive." aPriori's
patent-protected cost management platform allows companies to assess, control, and
reduce cost of goods sold by whole percentages.


The aPriori cost management platform uses innovative, patent protected technologies,
and is capable of using design information driven off of MCAD geometry. Additionally
the ability to model production facilities (including machine capabilities, raw
materials, and facility cost structure) and the specific cost accounting
methodologies, accurate predictive, allow "forward looking" real time cost
estimates.

"aPriori has customers in a variety of industries including High Technology,
Industrial Equipment, Automotive, and Heavy Machinery. Recent aPriori customers
include John Deere, Panasonic, Thomas & Betts, JLG, Wrobel Engineering, and Dana
Corporation."





Web Site = http://www.aPriori.com

Contact Details = Contact:
John Busa
aPriori
978-371-2006
jbusa@apriori.com