Should Costing for
Exhaust System
Foremost high-performance car maker in the automotive sector - Titanium vs Stainless Steel material decision
Product
Exhaust Assembly
Volume
300 Pieces
Location
UK
Material
Ti vs SS
Saving
£1.3m / yr
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.
Technical Information · Product Description
Exhaust Manifold Assembly
Major Parts
- Manifolds
- CAT chambers
- Lambda sensors
- Fully pressed muffler (upper & lower shell)
Construction
Primarily sheet metal and pipe formed along with welding. 4-channel catalytic conversion system with a single diffuser at the end.
Key Aspects
- 1.Optimum process adopted using best technology
- 2.Appropriate machine selection
- 3.Appropriate process parameter selection
- 4.Up to date cost data for materials, machine and labour at the manufacturing location
Deliverables
- 1.Should Cost analysis for the exhaust assembly for both Titanium and Stainless Steel
- 2.Identification of cost drivers and recommendations for cost reduction
- 3.Customer knowledge-base documentation compiled
Cost Drivers for Exhaust Assembly
Case Comparison: Titanium vs Stainless Steel
Case 01
Titanium
Manufacturing Location: UK
Total Cost
£13,260
Major Cost Drivers
Case 02 · Recommended
Stainless Steel
Manufacturing Location: UK
Total Cost
£8,910
Major Cost Drivers
Value Additions
What Emithran delivered
Annual Cost Saving
Identified by switching from Titanium to Stainless Steel across 300 units per year.
Target Cost Coverage
Supplier target cost established against every component in the exhaust assembly.
Negotiation Ready
Emithran cost breakdown enabled value-based price negotiation with suppliers.
Design Optimised
Main cost drivers identified via value engineering - design optimised for cost.
For Enquiry
Want a should-cost analysis for your assembly?
Talk to our engineering team. We scope, model, and deliver a cost breakdown you can take straight into supplier negotiations.
Related solutions
Where this analysis fits on the platform
Related
More case studies
India vs Belgium: 38% Landed Cost Saving on HGV Chassis Rails
By benchmarking India roll forming against Belgium manufacturing, Emithran identified a 38% total landed cost advantage including full DDP logistics from Chennai to Scotland.
HGV Chassis Ladder Frame: India vs Northern Europe Rail Cost
Northern Europe vs India cost comparison across 74 BOM line items for an electric HGV chassis ladder frame, identifying a 38% reduction in manufacturing cost for rails produced in India.
Aerospace DC-DC Converter: VAVE Analysis Saves 22% per Unit
Full teardown, component-level should costing and 13 VAVE ideas for an electric two-wheeler OEM's DC-DC converter, including a 39% body cost reduction and a 28% PCBA cost reduction.