Reducing production costs in the car industry
Predicting car production costs to identify opportunities for optimization
Manufacturing a car requires the production of several components, each with its own assembly lines. The goal was to enable management teams in the car industry to estimate the costs of future vehicles on each production stage, as a way to identify opportunities for optimization and cost reduction.
By integrating data from the production cost centers of the past 15 years, the team was able to develop an algorithm that enables predictions for the costs of future cars in each production stage. The results takes into account historical data, the vehicle’s requirements and technological developments.
An internal web app makes the results easily readable, through the creation of charts and graphs. Teams are able to detect areas and production stages where there is opportunity for optimization and cost reduction.