Case Studies > LEVC Identifies 25-40% Savings on All Systems Estimated with aPriori

LEVC Identifies 25-40% Savings on All Systems Estimated with aPriori

Company Size

1,000+

Region

Asia
Europe

Country

China
United Kingdom

Product

aPriori

Tech Stack

3D CAD Models
Digital Twin

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Productivity Improvements

Technology Category

Analytics & Modeling - Digital Twin / Simulation
Functional Applications - Product Lifecycle Management Systems (PLM)

Applicable Industries

Automotive

Applicable Functions

Procurement
Product Research & Development

Use Cases

Predictive Maintenance

Services

Software Design & Engineering Services
System Integration

About The Customer

Hailing an iconic black cab in London has long been considered a safe and reliable premium service synonymous with the city. Today, with the transportation sector flooded with competition, and the current focus on turning London into an electric city, the rebirth of the black cab came at just the right time. Realizing their potential, The London Taxi Company – the original black cab company – was purchased by Geely of China in 2013. The resurrection of the iconic black cab combined with the city’s new zero emission policy on all taxis has evolved into The London Electric Vehicle Company. LEVC’s black cabs are sold to independent taxi owners in and around the city, as well as fleets and independent owners in cities worldwide. According to their website, their company goal is to “change the world and make cities cleaner and greener for everyone, where air pollution is a thing of the past and easy, comfortable and safe transportation is accessible to all.” Dr. Scott Hunter-Saphir is the Projects Controller at LEVC. His essential responsibility is managing all the budgetary requirements relating to spend, scope, concept, and delivery around projects that are initiated on the engineering side.

The Challenge

As a new business creating a new design with a new team, a new factory, and a new supply base, the number one priority for LEVC was getting to market quickly with a high quality product. This drove a focus on delivery at the expense of an integrated manufacturing costing strategy. The closer they got to launch, the more apparent it became that they hadn’t put as much into the cost management side of the vehicle as they should have. It was during this time that LEVC committed to developing a cohesive cost strategy going forward. Once this priority was established, LEVC realized they needed some type of tool and process to help identify where they could reduce costs both internally and with suppliers in the future.

The Solution

LEVC is now using aPriori to generate detailed manufacturability data and costs for a wide variety of components. Internal assessments of their own costing results and approach has helped them to identify new and potentially valuable cost-down projects their team could analyze in the future. The process started with a comprehensive costing exercise on the metal structure parts of the car, which has already started to return some strong financial results and beneficial engagement with their suppliers. LEVC also conducted a full bottom up costing analysis on the interior of the vehicle, where there are several plastic injection molded parts. Before using aPriori, the company spent significant time and money looking to retool parts and move them out to China. The problem they encountered was their volumes were much lower than other manufacturers with similar types of vehicles, so their payback time to retool would be much longer. When you add to that the shipping costs and import duties, the costs were prohibitive, despite the usually expected savings from low cost production centers. aPriori helped LEVC identify a better way – using their current supply base – and use that to start discussions with suppliers about where they could become more efficient – without the need for retooling.

Operational Impact

LEVC's use of aPriori has led to meaningful engagement and positive results with suppliers.
The company has identified new and potentially valuable cost-down projects for future analysis.
The comprehensive costing exercise on the metal structure parts of the car has started to return strong financial results.
LEVC has conducted a full bottom-up costing analysis on the interior of the vehicle, leading to better cost management without the need for retooling.
The product costing team at LEVC has taken a long, hard look at their costing process, leading to a cohesive and holistic internal strategy.

Quantitative Benefit