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American Axle & Manufacturing drives cost savings with Siemens PLM Software solution

Siemens Visionary Siemens Visionary
Siemens Visionary

Cost_Management_4.jpgRevolutionizing the propulsion of future vehicles - American Axle & Manufacturing (AAM) is a global leader in designing, engineering, validating and manufacturing driveline, metal forming, powertrain and casting technologies for commercial and industrial automotive markets. As one of its primary strategic objectives, AAM is committed to focus on cost management to deliver exceptional value to customers.



This blog provides you a summary of the key take-aways on how American Axle & Manufacturing overcomes his challenges through realizing the benefits of cost management. To receive a detailed view on project you can read the success story here.


What are the main business challenges AAM must deal with?

  • Overcome increased industry complexity due to advancements in electrification and fuel efficiency
  • Design products to meet customer needs


Cost_Management_8.png“For us, precise cost calculations are extremely important at this early design stage, especially because at that point in time we often lack product information, such as 3D data. In other words, the technical product specifications are mostly unknown or unclear. That’s why we did not consider a purely parametric-based solution, but a bottom-up costing solution.”

Surya Chiravuri, Senior Manager, Value Analysis and Value Engineering, AAM



What are the keys to success for AAM with the Cost Management solution from Siemens?Cost_Management_3.png

  • Uncover potential cost savings with process- and database-based costing solution
  • Standardize globally accessible costing calculations and processes
  • Identify unprofitable variants as candidates for discontinuance
  • Visualize target cost gaps from a product/process standpoint


What are the benefits AAM achieves with the Cost Management solution?

  • Cost_Management_9.pngReduced costs in early stages of product development
  • Saved costs on supplier projects due to increased visibility and collaboration
  • Realized significant time savings by leveraging global collaboration
  • Achieved target costs
  • Enhanced efficiency by allowing cost engineers to focus on design and product  development



Cost_Management_8.png“The Teamcenter solution for cost management has helped us run successful supplier workshops for years by providing a transparent view of the cost of purchased parts. This allows us to achieve the envisioned cost savings in projects with our suppliers.”

Surya Chiravuri, Senior Manager, Value Analysis and Value Engineering, AAM



Read more about AAM's success with the Siemens solution for cost management.


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