A parametric cost estimation model to develop prototype of electric vehicle based on activity-based costing

Abstract

Accurate estimation is still challenging for the development stage of a product due to lack information about the production process, bill of material, and detailed activity. Parametric cost estimation based on activity-based costing can be used to generate the cost information of the whole process from the design stage until development stage. This paper presents a parametric cost estimation model that links activity-based costing to enhance accuracy of estimation for developing an electric vehicle prototype. The parametric cost represents the development process of a prototype consisting of four main processes. It also presents activities, cost center, and cost driver in each process. The total cost of each cost center is formulated by mathematical equations. A prototype of the Sebelas Maret Electric Vehicle is chosen as a case study. The proposed model can be utilized to predict total cost estimation the prototype of electric vehicle. This estimation method can influence cost reduction of developmental stage.

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