Automotive & Mobility

Systematizing the Planning and Management of Development Cost for New Cars

Challenges

How can a centralized planning and cost estimations for new car developments effectively conducted on component, cost-center, and activity level?

Problem-Solving Approach

Defining a standardized vehicle structure:

  • Defining a standardized structure for the vehicle and the components
  • Matching the standardized structure with existing structures/modules

Identifying the cost levers and defining the premises:

  • Ascertaining crucial cost drivers
  • Detailing the components with respect to functional and technological specifications
  • Aligning the standard specifications within and between the relevant departments

Detailed analysis of past vehicle projects:

  • Selecting reference projects
  • Evaluating as-is values
  • Recording the process steps
  • Detailed appraisal of the cost drivers for selected components

Determining to-be values for the development costs based on the functional specifications of a standard vehicle

 

Applying the new planning method:

  • Defining new processes for cost planning and management
  • Conducting pilot applications on selected vehicle projects

Conceptualizing and developing a new IT tool for planning

Results

Effort and time required for estimating the development costs for new vehicle projects significantly reduced

 

Reliable and ambitious basis for the planning of development cost established that is well accepted by the various departments

 

Key cost drivers determined that can be used to assess the costs of different technological concepts

 

Transparency on costs improved to allow the definition and prioritization of project/vehicle specifications

 

Basis for systematically identifying improvement potentials and following up the initiated measures in a transparent way