aPriori > Case Studies > Digital Factories: Carrier's Strategy to Save Millions and Reduce Emissions

Digital Factories: Carrier's Strategy to Save Millions and Reduce Emissions

Technology Category

Functional Applications - Manufacturing Execution Systems (MES)

Applicable Industries

Equipment & Machinery

Applicable Functions

Logistics & Transportation
Product Research & Development

Use Cases

Additive Manufacturing
Manufacturing Process Simulation

Services

System Integration

About The Customer

Carrier is a leading manufacturer of products across three primary market segments: HVAC (both residential and commercial), refrigeration, and fire/security. The company generates nearly $20 billion in sales and employs 50,000 people. Carrier's products require different manufacturing processes including casting, sheet metal bending, wire harnesses, PCB assembly, and additive manufacturing. The company's cost engineering group works directly with design engineers and supply chain representatives throughout the organization to identify cost drivers and the potential for value-driven improvements.

The Challenge

Carrier, a manufacturer of products across HVAC, refrigeration, and fire/security segments, faced a significant challenge in modeling manufacturing costs for complex parts requiring multiple manufacturing processes. The company's cost engineering group was tasked with optimizing product cost and value through improved supplier negotiation and cost-effective design. However, traditional tools like Excel spreadsheets or traditional cost estimation software were not well-suited to generating accurate manufacturing cost models for this high-tolerance, multi-faceted production process. Precisely modeling manufacturing costs for this assembly without the capability to analyze an actual 3D model was simply not possible. Additionally, Carrier was also aiming to meet their emissions reduction goals, which required a detailed understanding of the carbon emissions associated with their manufacturing processes.

The Solution

Carrier implemented aPriori, a technology that allowed them to automate the process of generating 'should cost' models for their diverse range of products. The company's cross-functional should cost team used aPriori to tackle a wide range of manufacturing cost modeling projects. They utilized over 80 digital factories in their aPriori implementation, generating should cost models across the full range of manufacturing processes required by their products. In addition to utilizing customizable digital factories, they developed several in-house manufacturing cost models to reflect some of Carrier’s unique designs and production requirements. aPriori’s configurable digital factory approach allowed Carrier’s should cost professionals to build detailed, highly accurate models of suppliers’ costs for rotor manufacturing. These manufacturing cost models were based on the precise tolerances required by Carrier for every aspect of the design. Furthermore, Carrier used aPriori as a critical tool in its mission to achieve a gigaton in carbon emissions reduction by 2030.

Operational Impact

The implementation of aPriori has revolutionized Carrier's approach to cost modeling. The use of digital factories has enabled the company to generate highly accurate cost models in just minutes, a process that previously could take weeks or even months. This has not only resulted in significant cost savings but has also paved the way for expanded use of aPriori on many components throughout the organization. Furthermore, the use of aPriori’s simulated manufacturing, based directly on a 3D model of the rotor, has been a game changer for Carrier’s should cost team. The company is also planning to leverage aPriori’s capabilities to generate even more value across the organization, including achieving a near zero RFQ time with key suppliers and automating an organization-wide component library. Additionally, aPriori has been instrumental in supporting Carrier’s 2030 ESG Goals, enabling the company to generate granular data on carbon emissions, a challenging endeavor for Carrier’s complex global supply chain.

Quantitative Benefit