Paris Air Show, France — June 16, 2003 — Solution provider Vykor today took the wraps off the latest version of its suite of Web-based application services designed to help companies source engineered parts.
Vykor's Velocity suite and the supporting technology provide the foundation of the provider's sourcing solution, which is designed to help companies eliminate cost inefficiencies in the production of engineered, machined parts and tooling.
The solution is intended to help original equipment manufacturers (OEMs) identify the most efficient production process for each engineered part, allowing sourcing and procurement specialists to better identify suppliers capable of producing a particular part and to work with the company's suppliers to reduce the cost of manufacturing parts.
The new version of Velocity creates benchmark "should costs" for parts, using algorithms and a costing engine to translate best-in-class manufacturing strategies into what a part should cost, given the most efficient production process, so that a manufacturer can validate proposed prices from suppliers, identify overpriced contracts and establish fair target prices for reverse auctions or other bid scenarios.
The solution also can help OEMs to reduce schedule and quality risks by defining the required supplier capabilities for the best production process for each part, according to Vykor. Procurement teams can use the solution to identify parts produced in suboptimal manufacturing environments and work with suppliers to improve their technology, for example, by offering an itemized list of machines and cutting tools that the solution recommends for optimal production.
Finally, OEMs can use Velocity to store and distribute Global Production Format (GPF) files, which encapsulate the best-in-class manufacturing strategy for each engineered part, ensuring that manufacturing technology and techniques advance throughout the entire supply base and that suppliers implement the most efficient and cost-effective processes. The GPF capabilities can also help reduce learning curves when an OEM moves work among component machine shops, Vykor said.
"With this new release of Vykor Velocity, our customers and our consultants can quickly capture, quantify and distribute optimal manufacturing strategies throughout the supply base," said Rob Eleveld, CEO of Vykor Inc. "We are especially pleased to introduce new functionality designed specifically for procurement organizations, providing them the visibility and control they need to manage costs and improve supplier relationships."
For a look at how one manufacturer used Vykor's solution to uncover process-based cost savings, read the article "Striking Gold with SRM" in the April/May 2003 issue of iSource Business.