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How KREATIZE Kills Black-Box Pricing For Custom Parts

One of the many benefits of working with KREATIZE is our clear price calculations for every part ordered. We are challenging the lack of transparency in the custom parts market, by offering a solution that annihilates black box pricing with open-book-calculations. 

When it comes to ordering customised parts, a lack of transparency in pricing is an ongoing problem. This is a big issue for hardware businesses because it keeps them from having access to important information that can save them time, and money. 

“Black box pricing is a big problem in the manufacturing industry,” said Simon Tuechelmann CEO & Co-Founder of KREATIZE GmbH.  Designers and engineers of custom parts are usually unaware of what the monetary and time costs associated with the manufacturing of their custom parts. “This makes it difficult for them to improve the design and engineering characteristics of their parts in order to reduce cost, as well as increase part performance,” concluded Tuechelmann. 

With KREATIZE hardware companies get access to detailed price data, which means they can better streamline their production processes to create better products with more speed and for less. In other words, KREATIZE provides hardware businesses with a tool that allows them to implement design manufacturability, which is the concept of designing products so that they are easy and less costly to manufacture. This is one of the major strengths of our KREATIZE Manufacturing Services (KMS) platform, which serves as the interface of our plug-and-play cloud manufacturing solution. 

“KREATIZE offers full pricing transparency to our clients via open book calculations,” said Fabio Sulser, Tech Lead for Data and Automation at KREATIZE. This is because production times for each individual component are clearly stated. “Customers can also expect to find the hourly machine rates for each order they request,” further explained Sulzer. 

So how does this take place exactly? 

First, customers must create a part list, or upload the designs of their desired part to a list they already have in their KMS account. After creating a list and uploading the designs of their custom parts, they must begin the process of configuring the part or parts, or what refer to in KREATIZE as making them cloud manufacturing ready. 

What does cloud ready mean? 

Cloud-readiness is the ability to get part designs configured, stored, and properly documented to benefit from one-click manufacturing.  Basically, this provides a customer the ability to order their parts at the click of a button with no impediments. KREATIZE’s technical-account managers will help you achieve this part of the process, so as to ensure you get the most out of your cloud manufacturing experience. The latter includes a clear and fair price that is based on making use of world-class manufacturing capacities for the manufacturing of custom parts, while benefiting from a transparent holistic price.  Once a part is fully configured, customers can request the analysis overview, which provides them with an open-book calculation.

“We see a breakdown of all our required processes and production requirements to produce these parts,” said Sulser. “This is split into times, so we can see the complete manufacturing times, broken down into setup and processing time for each process, for the whole part list, as well as for individual batches.”

KMS Price & Time Breakdown

As seen in the image above, customers benefit from a visual pie chart (which actually shows times when hovering your mouse arrow over it), and standard clear calculations below the imagery. 

The setup time, production time, and raw material costs to make each custom part is factored together to make up the total price. The latter is always clearly highlighted at the bottom with all calculations, and based on market forces. 

KREATIZE’s time estimation algorithm draws upon insights with the help of specific tools, such as KREAMinds – The Manufacturing Graph, cam simulations, and specific calculation models. 

“With every new part offered, we improve our ability to provide customers with fast and honest prices,” said Sulser. “By doing this we shed more and more light into this once dark process with every customer purchase.” 

Watch the discussion between Tuechelmann and Sulser below: 

Are you ready to take your manufacturing to the cloud with KREATIZE and end black-box-pricing? 

Start now with your free account by making an appointment with one of our cloud manufacturing specialists today. You can also sign up to our newsletter “Cloud Manufactured” to find out more about cloud manufacturing, hardware innovation, and our services.

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