Cost analysis and identifying cost potentials of retrofitting regional vehicles

Identified potential of 40 % compared to the offer

Initial situation & task

  • Cost analysis and determination of potential for the conversion of a regional vehicle
  • Determination of development costs
  • Determination of manufacturing costs for installations/extensions as well as conversions for a standard and a minimum variant

Approach

  • Cost assessment of the existing vehicle
  • Definition of the modifications (delta method)
  • Cost evaluation of the adaptations
  • Calculation of development costs
  • Simulation and evaluation of different variants
  • Analysis of the overhead cost structure of the executing company

Results

  • Clear elaboration of a target price and a time frame for implementation
  • Transparent, reliable basis for bid negotiations
  • Clear identification of cost drivers
  • Alternative configurations with evaluation of implementation costs
  • 40 % savings potential compared to quotation

Determining the total cost of ownership for an offshore wind farm

Proof through life cycle cost analysis: Break-even point < 10 years

Initial situation & task

  • Determining the total cost of ownership for an offshore wind farm
  • Wind farm of this size is unique so far
  • In addition to the wind turbines, the transformer platform and the onshore installation must also be taken into account.
  • Utilisation costs not yet recorded
  • Maintenance concept not yet defined

Approach

  • Cost assessment of the planned plant (80 wind turbines, transformer platform and land-based plant).
  • Determination of premises of utilisation (maintenance, spare parts supply, repair scenarios, etc.)
  • Simulation of the utilisation costs under the given premises
  • Variation of the premises
  • Approximation of the optimal utilisation scenarios

Results

  • Identification of the cost-driving elements in operation
  • Stockpiling of appropriate quantities of spare parts
  • Liquidity planning for capital expenditure on an annual basis
  • Determination of the TCO with clear presentation of the break-even point

Validation of indication quotations for a flight system through parametric evaluation

Early project estimation with a maximum deviation of 5 %

Initial situation & task

  • A completely new type of aircraft is to be developed
  • First indication offers have been requested
  • The quotes are to be validated and a should price determined

Approach

  • Rough structural development (parts list)
  • Assumptions about possible characteristics recorded with an expert
  • Basic parameters: Number of units, payload, first flight/entry into service
  • Evaluation of individual components and assemblies
  • Evaluation of assembly and test efforts

Results

  • Deviation of the estimated costs in the preliminary design phase from the actual procurement costs is 5 %

Parametric evaluation of a test stand

Long-time supplier reduces prices by 10 % after parametric cost analysis with 4cost software

Initial situation & task

  • A supplier has been asked to provide an initial ROM (rough order of magnitude).
  • Management wants clarity on value for money
  • The supplier has been in business for over 20 years and has supplied the client with several systems
  • Preparation of a shouldcosting and support in negotiations

Approach

  • Creation of a parametric calculation from the technical descriptions (rough specifications)
  • Creation of a rough structure
  • Parametric evaluation of individual components and assemblies with customer and supplier
  • Negotiation support
  • Identification of cost drivers and discussion
  • Evaluation of the degree of novelty for the supplier
  • Evaluation and negotiation of engineering hours

Results

  • With 4cost’s technical negotiation support based on parametric evaluation, a saving of 10 % was achieved with the long-term supplier

Comparison of the subsequent manufacturing costs of an injection system

Series costs deviate by a maximum of 3 % from the cost estimation in the concept phase

Initial situation & task

  • A new generation of injection nozzles is to be developed
  • Management demands a detailed calculation
  • A bottom-up calculation is not possible at this early stage due to a lack of detailed information

Approach

  • Cost determination is only possible via the parametric approach with 4cost-aces
  • In a cost workshop with all parties involved (developer, designer, project manager, purchaser) the available information is compiled and transferred to 4cost-aces

Results

  • The early cost estimate was compared with the actual costing in the product development, pre-series and series phases: the real cost deviation is 3%