Light Duty Technology Cost Analysis, Power - US Environmental ...

Costing Databases Support Process Mapping and Quote Worksheet Phases of Cost Analysis
Five (5) Databases store rates for all eight cost elements used within the cost analysis: Material, Labor, Burden, Mark-up (End-item Scrap, SG&A, Profit, and
ED&T) and Packaging
1. Select Component
Assembly, Subsystem, and
/or System, for cost
analysis
4. Populate Standardized Quote Worksheets - Two Main Functional Sections
(Also referred to as Manufacturing Assumption and Quote Summary (MAQS) worksheet)
3. Develop Process Flow Charts/ Process
Maps using Design Profit Software®
During the teardown process, process flow charts
capturing every manufacturing operation are generated,
including all key part input data and part specific
manufacturing data.
5. Market Place Cross-
Check on Selected
Assemblies through
solicitation of Industry
Experts
Quote Summary
(Sections B,C,E & F)
Manufacturing Assumptions
(Section D of MAQS)
2. Conduct Controlled
Teardown Process
Using the data generated in the Manufacturing
Assumption Section of the MAQS, along with data
from the Costing Databases, a net
component/assembly cost impact is calculated.
Using the data captured in the Process Flow
Charts, multiple calculations are performed
establishing the mass production manufacturing
assumptions.
For simpler processes, process parameter models are setup
within the Design Profit ® Software to calculate part
manufacturing data based on entered part data.
For more complex operations and processes, external
process parameter models are used.
6. Roll Up costs from MAQS
Assembly Worksheets into
Net Incremental Subsystem
Costs
Information used in final calculations includes the
following:
> Calculated pieces/hour
> Material specification, quantity, and price/pound
> Labor Classification, number of operators, and
cost/hour
> Burden Classification, number of machines, and
cost/hour
> OEM/Supplier Classification, percent of total
manufacturing costs
> Packaging Container, cost per container, number of
parts per container
7. Roll Up each
Incremental Subsystem
Cost into a Net
Incremental System Costs
followed by a Net
Incremental Vehicle Cost
Examples included the following:
> OEM and Supplier classifications are selected,
based on component type and processes, establishing
the applicable mark-up rates
> Serial operations are combined into parallel
operations where applicable
> Operations, both serial and/or parallel, are grouped
into high volume parallel processes where applicable.
> Equipment numbers calculated to support capacity
requirements
> Final equipment selection and associated burden
rates are established
> Number of operators required to support defined
manufacturing process calculated
> Piece per hours calculated
External Process Parameter Models
Using process parameter models developed in Microsoft
Excel, part input parameters (material specifications, mass,
volume, part geometery, part features, etc) are fed into
the process parameter models generating key output
parameters (e.g. equipment type, equipment size, operation
cycle times, material usage, etc).
Figure C-1: Fundamental Steps in Costing Process
The calculated manufacturing process data is then fed
back into the Process Maps
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