Assy Chassis Ladder Frame
HGV · 4×2 · 4M
Specialist developer of an Electric Heavy Goods Vehicle - Northern Europe vs India cost comparison across 74 BOM line items
Annual Qty
1,400 units
Finish Weight
591.8 kg
BOM Line Items
74 items
Shifts
Double
Rail Saving
−38% India
Problem Statement · Business Challenges
What needed to be solved
Assessing the optimal supplier for chassis ladder production in Northern Europe and determining the overall cost effect of producing side rails in India.
- Nominating the European main supplier for the chassis ladder assembly
- Negotiating the supply price with shortlisted manufacturers
- Determining the manufacturing location for chassis rails - India vs Europe - based on cost, quality, and delivery
Scope of Work
What Emithran was tasked to do
- 1.Evaluate the existing design to ascertain the cost of the chassis ladder frame assembly using the should-cost methodology specific to Northern Europe
- 2.Estimate the manufacturing costs for chassis rails produced in India
Key Aspects
- 1.Ideal process planning with advanced technology integration
- 2.Appropriate machine selection
- 3.Precise process parameter determination
- 4.Contemporary cost data for materials, machinery, and labour at the manufacturing site
Technical Data
BOM Breakdown
Material Grade Usage
Input Materials - Total 935 kg
Cost Analysis - Chassis Ladder Frame
Total Assembly Cost: €5,248.81 · Northern Europe
Cost Distribution
Primary cost driver
Input weight: 935 kg
10% SG&A on mfg + 10% profit on overall
Top 3 Cost Drivers - Child Parts
Chassis Side Rail - Region Cost Comparison
India vs Northern Europe
Northern Europe
Baseline
SG&A + Profit included
India · Recommended
−38%
DDP + SG&A + Profit - cost reduction vs Northern Europe for rails
Deliverables
- 1.Should Cost Analysis report for Chassis Ladder and Rails
- 2.Identification, analysis, and recommendations for cost drivers and reduction strategies
- 3.Documentation of knowledge and lessons learned
Value Additions
What Emithran delivered
Target Pricing
Established target prices with suppliers for all components within the chassis ladder assembly.
Negotiation Support
Cost breakdown validated supplier pricing and enabled effective negotiations, facilitating selection of the optimal option.
Value Engineering
Analysis of major cost drivers guided the client in conducting value engineering for design and cost optimisation.
Cost Saving Opportunity
38% reduction in manufacturing costs identified for rails produced in India compared to Northern Europe.
For Enquiry
Need a should-cost analysis for your chassis or structural assembly?
Our engineering team models your assembly from first principles - giving you a cost breakdown you can use to negotiate, source, and design smarter.
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