Estimating the cost of a new technology intensive automotive product: A case study approach

Estimating cost of new technology intensive products is very ad hoc within the automotive industry, There is a need to develop a systematic approach to the cost estimating, which will make the estimates more realistic, This research proposes a methodology that uses parametric, analogy and detailed estimating techniques to enable it cost to be built for an automotive powertrain product with a high content of new technology, The research defines it process for segregating new or emerging technologies from current technologies to enable the various costing techniques to be utilised. The cost drivers from an internal combustion engine's characteristics to facilitate it cost estimate for high-volume production are also presented. A process to enable it costing expert to either build an estimate for the new technology under analysis or use a comparator and then develop it variant for the new system is also discussed. Due to the open nature of the statement 'new technology', research is also conducted to provide a meaningful definition applicable to the automotive industry and this project. (c) 2004 Elsevier B.V. All rights reserved.