Establishing a complexity cost model

To improve cost-oriented product development, the estimation and allocation of variant costs which are incurred by relevant indirect process activities is necessary and useful in addition to direct costs (material, production, assembly, etc.). Such a complexity cost model for the estimation of indirect variant costs was to be implemented at an equipment manufacturer to be used for the development of modular platforms.

Objective

Development of a complexity cost model to calculate variant costs which are incurred by relevant indirect processes

Approach

Development of departmental models for all complexity-relevant one-time and ongoing indirect costs
Validation of the overall model and development of an application catalog
Integration of the software tool into the controlling tool infrastructure

Results

Software-based complexity cost model to calculate variant costs
Sustainable implementation of complexity cost awareness by means of establishment of new management principles, rules and responsibilities within the operational and organizational structures incl. tool infrastructure

Establishing a complexity cost model

Objective

Approach

Results

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