Managing cost drivers: the case of RESOLVE project

Abstract
Purpose – The purpose of this paper is to discuss how cost drivers can be analyzed and managed; particularly the focus is on the product design configuration.
Design/methodology/approach – This is a constructive case study (Kasanen et al., 1993).
Findings – The empirical domain of this paper is the dynamic and complex electric mobility scenario. The focus is on the RESOLVE project, funded by the European’s Union research and innovation program1; RESOLVE aims to find technological and design solutions suitable for a wide range of Electric L-Category Vehicles (ELV), culminating in two demonstrator vehicles. To date, the wide diffusion of fully electric vehicles is delayed by several limiting factors, among which powertrain’s cost is the most relevant. RESOLVE will face cost reduction in several ways: by modular and scalable design of the components (i.e. battery pack), through functional integration for drivetrain electronics as well as using existing low-cost solutions for few devices.
Research implications/limitations – The case analysis suggests guidelines for analyzing cost drivers and using cost information to support this process; other researches are needed to extend the conclusions in different contexts.
Practical implications – Understanding cost driver relevance and manageability contributes to increase the effectiveness of cost reduction through design. Selecting relevant cost drivers and relative suitable cost information could support management in identifying possible levers in order to reduce costs and may play a role in developing sustainable solutions in the automotive sector.
Originality/value – The paper tries to improve our understanding about cost driver selection and management.
Paper type: Research paper.