International Conference and Exhibition on

Automotive Science and Technology (ICEAST)

2012

A Cost Estimation Model to Develop Mock-Up of Electric Car

a,b)

Wahyudi Sutopo, a,b)Rakhman Ardiansyah,

Dwi P.T., b,c)Muhammad Nizam

b,c)

D. Danardono

a)

Laboratory of Logistic and Business System, Department of Industrial Engineering,

Faculty of Engineering, Sebelas Maret University
b)
Team of Research & Development for Indonesia Electric Vehicle Consortium of Sebelas
Maret University
c)
Department of Mechanical Engineering, Faculty of Engineering, Sebelas Maret
University Jl. Ir. Sutami No. 36A Surakarta 57126
E-mail: wahyudisutopo@gmail.com; rakhmanne@live.com; danar1405@gmail.com;
nizamkh@gmail.com
Abstrak: Cost estimation is a calculation that used to generate total cost of a product.
Generally cost estimation is done after the product through the design phase. But now,
calculation of cost estimation was conducted when the product is in the product design
phase. Based on many research before, model of cost estimation is formulated for a product
at design phase, development phase, and mass production. Mobil Listrik Nasional (Molina)
as know Indonesia Electric Vehicle called Smart-T is a product which still in product
design phase. That product is designed by Molinas Team from Sebelas Maret University
(UNS). Before producing prototype and mass production, UNS have to build mock-up of
Molina. Cost estimation system for mock-up must be determined which is the most
applicable. Research Approaches to generate model is parametric method. Purpose of this
research is to know cost estimation model for mock-up of Molina. The approach to finalize
cost estimation of mock-up is parametric method. The final output from the research is total
cost estimation with numerical example for mock-up of electric vehicle.
Keywords: cost estimation; electric vehicle; mock-up; product design
1.

INTRODUCTION
The Government of Republic of Indonesia is aggressively pursuing research and development of national electric
vehicle called Mobil Listrik Nasional/Molina (Indonesia Electric Vehicle). Sebelas Maret University is trusted the
Republic of Indonesia establish research and development team of Molina. The research process of Molina is
professional research. That professional process is set up to make the product with high quality and ready for mass
production in the future. The project of Molina is funded by Directorate General of Higher Education (DGHE),
Ministry of Education and Cultural.
Molina is a product that are still in the design phase. At this phase is still performed many experiments and
research. The output of this phase is form of mock up. Mock up is physical form of Molina but couldnt be operated.
After the stage is passed, formed the prototype that can be operated and then ready to continue to mass-production.
According to Weustink et al. (2000), design phase have the biggest opprtunities to minimize production cost that affect
to pricing strategy.
Cost estimation is a calculation of cost which is used to find total cost of a product before actual production
process is performed (Kesavan et al., 2008). Cost estimation make decision maker have a detail calculation to evaluate
and to compare alternatives. To make an accurate pricing strategy, cost estimation is needed. The greatest potential for
cost reduction is at design and development phase (Duran et al., 2009). Since cost estimation is done at early stage of
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2012

product cycle, it is making easier for researcher to find comparison between cost and productivity estimation
(Cavalieri et al., 2004).
Generally, stage of product cycle is design, development, and mass-production. Cost estimation usually done at
every stage of product cycle. Cost estimation for a mass-production is easy to calculate because the product are already
exist (Tsuchiya & Kobayashi, 2004). But cost estimation at that stage is hard to make the greatest cost reduction
because after design phase is through so the best opportunity to minimize cost is also through (Weustink et al., 2000).
There are many benefits derived from the activity cost estimate in design stage i.e. for determining patent and royalty.
Molina that is still at design and development have a great potential to be patented. Without cost estimation at design
stage, it is really hard to calculate value of patent. Advantages from patent is maximizes profit from product that
licensed (Poddar & Sinha, 2002).
Cost estimation for mock-up of Molina should use the most appropriate kind of cost estimation systems. The
purposes of this research is to find cost estimation model for mock-up of Molina. There are some cost estimation
method that usually used at many research. Some of that method are engineering approaches, analogy-based
techniques (Cavalieri et al., 2004; Duran et al., 2008), and parametric models (Qian & Ben-Arieh, 2008; Gunduz et al.,
2011). This research use parametric method.
Parametric estimating is an estimating method developed and used by trade associations. New housing
constructions is an example of this method (Kesavan et al., 2009). This method usually used at project where still a
few people that know the (Gunduz et al., 2011). This method also gives a quick estimation without need a detailed data
from whole of production process (Chougule & Ravi, 2006). The most important stage at parametric cost estimation is
collecting data and testing. After estimator develop an estimation method, sample of data have to be collected and
generate a bell curve or normal distribution. Then after parametric data is used to estimate, should do the test for actual
work and then do the proper correction to get a better estimation (Kesavan et al., 2009).
2.

RESEARCH METHOD
This research was conducted with approaches as follow (Figure 1). Early stage of this research is started from
design of Molina that still in a mechanical drawing. Based on mechanical drawing, material that needed to produce
Molina can be classified. Classification of material is important to calculate total material cost from price per material
and quantity of material. So, it can define total material cost that needed include overhead cost that assumed.
Next stage is analyzing attributes or factors that affect cost estimation for mock-up of Molina. Mock-up is a part
of product development stage. Mock-up is formed a car but couldnt ready to operate. Production process of mock up
is different with mass-production process. Production process of mock up still has many things that must be consider
and lastly established some cost activity like engineering activity. It called engineering cost which consists of designstyling, verification and testing, body and compartment development, chassis system and power management, and
battery charger.

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2012

Fig. 1. Research Approach

Based on materials that needed and experts that involved, then analyzed and estimated total cost for mock-up of
Molina. From the process flow can be identified component of cost. Figure 2 shows position of mock-up at product
cycle and estimation method that appropriate.

Fig. 2. Using of Cost Estimation Method

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2012

After calculated all of the cost that consist at process of mock-up then the cost estimation model for the mock-up
Molina is generated. From this initial estimation model is able to calculate all the components of the costs involved.
However, this model still must go through phases of verification before it became a model that can be used. To verify
the accuracy of the model required an analysis of the model. If the model has been verified and is considered accurate
then the cost estimation model mock-up can be used.
RESULT AND DISCUSSION
Generally cost elements of a product consist of labor cost, material cost, and overhead cost. There are some
differences to classify cost components. Figure 3 shows classification of cost element for Mock-up Molina. That
difference established because mock-up is a product that not ready to use yet. However, engineering cost appeared to
replace labor cost. Cost elements of engineering cost consist from four parts. Each part consists of experts that
separated to three types of experts. They are senior, middle, and junior of experts.
3.

Figure 3. Cost Element of Mock-up Molina

Generally phases that must be through to produce a mock-up engineering, manufacturing, tooling, quality
controlling, and testing. But for mock-up Molina, engineering cost can represent all of process that generate cost. If the
product are ready to mass production so the phases going to be more complex.

Term
TC
EC
MAC
OC

Table 1. Term of Cost Element

Description
Total cost
Engineering cost
Material cost
Other cost

From equation (1) can be identified that cost component for mock-up composed from 3 type of cost. They are
engineering cost, manufacturing cost, and other cost. Table 1 describes the equation of total cost.
(1)

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2012

Engineering cost on manufacturing mock-up have similarities with labor cost that usually calculated to find total
cost of a product. Engineering cost calculate total cost involved in the use of experts. Calculation of engineering cost
involves four components. There are Design-styling, Body and compartment development, Chassis system and power
management, and Battery charger.
Table 2. Term of Engineering Cost
Description
Design-style hour
Design-style rate
Design-style overhead
Body and compartment hour
Body and compartment rate
Body and compartment overhead
Chassis system and power management hour
Chassis system and power management rate
Chassis system and power management overhead
Battery charger hour
Battery charger rate
Battery charger overhead
i = (1, 2, 3) type of experts

Term
DSHi
DSRi
DSO
BCHi
BCRi
BCO
CSPHi
CSPRi
CSPO
BcHi
BcRi
BcO
i

Equation (2) identifies that calculation of EC involving four part of engineering. That equation multiply
engineering rate with engineering hour of each part. Then overhead costs of each part are added. Table 2 shows
description each part of equation (2).
(2)

Material cost of mock-up can be calculated based on bill of material (BOM). BOM represent material type and
amount required to produce a mock up.

Term
Q
P
MACO

Table 3. Term of Material Cost

Description
Quantity
Price of material
Material cost overhead

Equation (3) identify calculation of material cost are multiplying amount of part needed with price of material.
Then overhead cost of material cost is added. Table 3 shows description of equation (3).
(3)
Other cost is the support cost that is not related directly to the manufacturing process of mock up. Cost involved
in other cost (OC) is administrative cost and travel cost. Table 4 shows description of equation (4).

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2012

Term
Adc
TRc
Ovc

Table 4. Term of Other Cost

Description
Administrative cost
Travel cost
Overhead cost

Equation (4) identifies calculation of other cost involving administrative cost, travel cost, and overhead cost.
(4)
Numerical examples of the model are shown in the tables below. To fill in values of model parameters, we
developed an MS. Excel-Macro based application. The user can input data such as all the parameters from the
historical data and set the parameters of engineering, material, and other cost. Display data input can be seen in the
Table 5 to Table 8. Table 9 and Table 10 describe the total material cost and other cost. Total Cost Estimation of
Mock Up can be seen in Fig. 11
Table 5. Total Design Styling Cost

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2012

Table 6. Total Body and Compartment Cost

Table 7. Total Chassis and Power Management Cost

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Table 8. Total Battery Charger Cost

Table 9. Total Material Cost

MATERIAL COST
Part
Cover Dashboard
Seat
Under Frame
Hinge and Door
Front Bulkhead
Front Baggage
Single Wiper
Car Paint
Bracket Motor and Battery
Front Windshield
Door Windshield
Frame

Total Material Cost

Overhead
Total Material Cost + Overhead
Table 10. Total Other Cost
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Total
Rp 2,100,000
Rp 4,000,000
Rp 10,500,000
Rp 3,500,000
Rp 1,355,000
Rp 1,850,000
Rp
550,000
Rp 10,000,000
Rp 6,375,000
Rp
960,000
Rp 1,550,000
Rp 4,000,000
Rp
Rp
Rp
Rp 46,740,000
20%
Rp 56,088,000

International Conference and Exhibition on

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2012

Table 11. Total Cost Estimation of Mock Up

Based on numerical example, total cost estimation of Mock Up is Rp566.688.000. The overhead are also
included on that calculation. In this numerical example, assumed rate of overhead for engineering and material cost is
20%. Otherwise assumed rate of overhead for other cost is 10%.
4.

CONCLUSION
Cost estimation model for mock up that generated is simple model which generally calculate total cost of a
product. The proposed model can be used to calculate total cost of a product which is still at design phase. Calculation
total cost of product design quiet different with total cost of finished goods. Total cost of mock-up can be used to
determine value of patent. Generally cost estimation of product design calculates the knowledge, experiment, and
brain of the experts or researchers that involver.
Further research is needed to develop the application of decision support system of cost estimation which
considers an engineering bill of material model. The application of decision support system is also needed to develop
algorithms approach to speed up the time processing of selected cost estimation model.
5.

ACKNOWLEDGMENT
The authors gratefully acknowledgment the Directorate General of Higher Education (DGHE),

Ministry of Education and Cultural, the Republic of Indonesia for the financial support under Penelitian
Kerja Sama Perguruan Tinggi, Pemda, dan Industri program FY 2012.
6.

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