Cost Documentation & Understanding

SAURABH KOKIL RAHUL ARETHIYA

 Session Flow

● Objectives of Cost and Manufacturing Event at Formula

Student
● Rule Changes for upcoming competition
● Document Submission
● Discussion on BOM, DBOM & CBOM
● Live Demo on FSG cost tool
● Cost Understanding
● Scoring
● Dos & Donts
● FAQs
● QA session
OBJECTIVES

● Understanding all the components of the vehicle

● Knowledge of manufacturing process
● Planning and Scheduling
● Managing operations
● Costs associated
The team must ensure that two judges are able
to review the CRD independently.

It is compulsory for at least one set of CRD to

be presented as hard copy, printed double-
sided, to the event discussion. Any additional
sets can be provided as either hard copy or
digital versions.

DBOM RULE CHANGES!

Scoring and Cost Finals

FB2020!
Cost Understanding - Methods for software
development cost calculation
 Documents
BOM ● Create online on competition
CBOM
DBOM
website
● PDF to be uploaded on FB portal

● For understanding BOM

SUPPORTING ● To be uploaded on FB portal
MATERIAL
FILE

COST ● For understanding CBOM

EXPLANATI
ON FILE
● To be uploaded on FB portal
 BOM

1) Frame & body (FR) 2) Miscellaneous fit & finish (MS) 3) Electrical (EL)

4) Suspension (SU) 5) Wheels & tires (WT)

 BOM-Bill of material

● BOM is the list of all the

part/assembly in the
system.

● Make wise use of the

comments sections
DBOM
 DBOM- Detailed Bill of Material

● In addition to BOM, DBOM must include

process and material.

● Every process needed to make material

into part is further divided into tolling and
fasteners

● Make proper use of supporting documents

for better understanding of the assembly
 CBOM
Engine and drivetrain
 CBOM- Costed Bill of Material
● In addition to DBOM, CBOM is inclusion of cost of all the process, material, tooling.

● Process cost should be estimated by machining rate, hourly rate which include depreciation
cost, overheads etc.

● Cost explanation file must contain all the consideration/assumption like euro conversion
rate, standard material price which should be consistent.

● There is no max cost all consideration must be logical and realistic

● DO NOT USE ANY STANDARD COST SHEETS

 CBOM Process Cost Example : 5-Axis CNC Machining
Item Value Details

Cost of machine 1,000,000 € Investment incl. installation

Yearly depreciation 125,000 € 8 years

Yearly maintenance 50,000 € All maintenance costs

Usage per year 5,100 € 50 weeks x 15 shits with 8 hours x 85% Uptime

Average yearly energy costs 22,950 € 15 Cent per kWH x usage x 30kW

Average yearly costs for tool 50,000 € Average use of machining tools (milling/cutter heads) for material mix
sets of Aluminum/Steel machining
Total yearly costs 247,950 €
Total cost per hour 48.62 € Total Yearly Costs/Usage

Personnel expenses per hour 50.00 € 1 operator per machining center, incl. taxes etc.

Total hourly rate 5 Axis 98.62 € For easier calculation 100 EUR/hour
CNC
15
 Changelog

● Teams have to complete and submit the CRD files as per the
completion deadlines and SAME COPY SAVED as on competition
deadline needs to brought to competition as a hard copy.
● Missing parts of the BOM cannot be part of the change log.
 Cost Understanding
.

This part is a discussion to understand the cost & manufacturing knowledge of the team.
Some of the topics that can be touched upon are:

Differences between prototype Resource and cost Financial and production

and mass production
Which manufacturing processes you
would have opted for if the car was
being mass produced? Why?
planning
Did you purchase a particular raw
material used for multiple
components at once or separately
during manufacturing of the
individual components?
risk management
How much was you budget before
the start of the project? How did
keep the Project Costs in check?

Environmental influence of the Effective Financial

Make or buy vehicle production Planning
decisions Have you considered alternative
manufacturing processes to aim for
What was the thought process Give examples of your performance
a greener production? Have any
behind purchasing/ making a decisions influenced how you
alternative material been used for
particular component? planned various components costs.
parts?
 Cost Understanding
Methods of software development cost calculation ?

?
 SCORING

The judges will be scoring the teams

on the below criteria. Maximum
weightage is on your understanding of
the Cost Event Make sure to not lose any points by
missing out on assemblies, parts or
Category Points processes!
Format and accuracy 5
Missing item Points
Knowledge of documents & 5
vehicle Assembly -5
Content and completeness of 30
Part -3
BOM
Process/Material -1
Realism of CBOM 10
Cost Understanding 50
 COST FINALS
The top teams will be chosen to participate in the cost and
manufacturing finals to determine the cost and manufacturing event
winner. The cost and manufacturing finals will be held separately from
the initial judging and teams will be informed about their participation
during the event.

𝑃𝑡𝑒𝑎𝑚
Cost score = 95 x
𝑃 𝑚𝑎𝑥

The scoring for the non-finalist is calculated as follows:

PTeam is the score awarded to the team
Pmax is the highest score awarded to any team not participating in the
finals

The scoring of the cost and manufacturing finalists will vary from 100 to
96 points.
Do’s & Don’ts
• Bring a hard copy of the Cost Report to the Event • Use previous years cost tables for any calculations

• Exclude the costs, except in the CBOM. Currency • Miss out on documenting certain parts or processes
should be in Euros in the CBOM
• Surrounding judges with the entire team
• Attach all the supporting documents
• Saying “Vendor gave this pricing”
• Use sticky notes for quick navigation
• Miss the submission deadline !!
• Give a short introduction before starting the event

• Be prepared with tools to disassemble any component

• Use charts, graphs, data models wherever possible

Any Question’s ?
THANK YOU!