Should Costing for
Exhaust System

Problem Statement · Business Challenges

What the client needed to solve

• Creating an achievable budget for this sub-assembly which meets the target cost for the vehicle.
• Negotiating a purchase price which meets the budget.
• Selecting the optimal material type - Titanium or Stainless Steel - based on the cost of manufacture.
• Setting a defensible supplier target cost ahead of commercial negotiations.

Project Specification · Scope of Work

What Emithran was tasked to do

• Review the current design and determine the cost of the exhaust assembly using the Should Cost methodology.
• Estimate the cost at UK conditions for manufacture in Titanium.
• Estimate the cost at UK conditions for manufacture in Stainless Steel.
• Identify cost drivers and provide actionable recommendations for reduction.

Key Aspects

1. 1.Optimum process adopted using best technology
2. 2.Appropriate machine selection
3. 3.Appropriate process parameter selection
4. 4.Up to date cost data for materials, machine and labour at the manufacturing location

Deliverables

1. 1.Should Cost analysis for the exhaust assembly for both Titanium and Stainless Steel
2. 2.Identification of cost drivers and recommendations for cost reduction
3. 3.Customer knowledge-base documentation compiled