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Using benchmarking to explore cost variance on new automotive models

The development of benchmarking capabilities in the automotive industry has improved transparency of product costs significantly. However, only a few automotive manufacturers have been able to commit the additional capacity and investment required to develop high-performing benchmarking techniques.

PA Perfect Cost Grid® – the first web-based benchmarking and cost-engineering platform for the automotive industry – gives purchasing, cost engineering and development staff timely online access to the costing and benchmarking results they need to develop competitively priced vehicles.

Carry out benchmarking against competitors' technical and commercial solutions

The costing and benchmarking database lets cost engineering and development teams compare technical and commercial solutions with competing vehicles and gives insight into product descriptions, bills of materials and visual documentation such as photos or drawings for systems, components and parts.

The first results from the PA Perfect Cost Grid® benchmarking platform show cost variance of up to 60% at a component level among mid-sized cars such as the most recent Hyundai i30, Golf VII and Mercedes A-class. For example, the Hyundai i30 often offers the lowest cost solutions while the Golf VII is close to its Asian challenger, and the Mercedes A-class could benefit from cost considerations even on its high spec models.

Get fresh benchmarking data on new automotive models every year

We update this database continuously: every year, we purchase new automotive models, strip them down and calculate the cost of all major parts and systems. Having started with three new C-segment models in 2013, most recently the Perfect Cost Grid benchmarking team has completed a full teardown, benchmark and costing within the small van segment. For the Daimler Citan, Peugeot Partner and Dacia Dokker the results show cost differences up to 50% across some systems, for example from a comparison of all exterior, and 27% potential difference on average for a vehicle. These results were derived from cost as well as weight reductions ideas.

The PA Perfect Cost Grid® benchmarking and cost engineering platform is informed by PA’s extensive experience in the automotive sector. We have worked with leading global automotive manufacturers and suppliers – including Fiat, Inalfa and Magna – on all segments, systems, cost drivers, and programme phases. Our cost engineering and benchmarking expertise has helped our automotive clients save hundreds of million of euros in the shortest possible time.

For more on using the PA Perfect Cost Grid® cost engineering and benchmarking platform to achieve 100% cost transparency on your vehicles – or for a personal presentation – please contact us now .

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