Open AccessAn Accuracy Investigation of Product Cost Estimation in Automotive Die Manufacturing
Author(s) -
Julia C. Bendul,
Vasile Apostu
Publication year - 2017
Publication title -
international journal of business administration
Language(s) - English
Resource type - Journals
eISSN - 1923-4015
pISSN - 1923-4007
DOI - 10.5430/ijba.v8n7p1
Subject(s) - cost estimate , computer science , automotive industry , cost reduction , estimation , cost driver , process (computing) , manufacturing engineering , production (economics) , industrial engineering , relevant cost , manufacturing cost , product (mathematics) , total cost , reliability engineering , risk analysis (engineering) , business , systems engineering , engineering , economics , mathematics , geometry , accounting , marketing , macroeconomics , aerospace engineering , operating system
Automotive die manufacturers face the constant challenge of producing qualitative products while having to reduce costs. However, cost reduction measures are rather insignificant during the actual manufacturing process as the most important cost-impacting decisions are taken during the design phase. Cost estimation methods attempt to determine the production cost already in the design phase; the cost can be broken down and therefore the plan times of manufacturing processes can be pre-calculated, thus enabling early capacity decisions. Many researchers have been focusing for decades on developing efficient cost estimation methods. Yet their scarce access to cost information meant that most of the developed methods could not be evaluated with real data and thus their implementation in practice being challenged. This paper reviews and classifies cost estimation methods and investigates the accuracy of the estimate based onpractical application in 190 cases. The overall aim is to determine the accuracy level of the studied methods in practice and therefore identify their application fields.