Methodology for Estimating Total Automotive Manufacturing Costs
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1983-04-01
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NTL Classification:NTL-PLANNING AND POLICY-PLANNING AND POLICY;NTL-ECONOMICS AND FINANCE-ECONOMICS AND FINANCE;NTL-ECONOMICS AND FINANCE-Economic Impacts;
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Abstract:A number of methodologies for estimating manufacturing costs have been developed. This report discusses the different approaches and shows that an approach to estimating manufacturing costs in the automobile industry based on surrogate plants is preferred. This method, which specifies the manufacturing processes and plant types required to make a component or a whole vehicle, provides reliable and traceable estimates of manufacturing cost. Examples are used to illustrate this preferred approach.
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