Cost modelling to support optimised selection of End-of-Life options for automotive components

Abstract

In automotive sector, the End-of-Life components, especially the uni-material components e.g. steel, plastics, etc., traditionally normally go to material recycling. This conventional disposing approach has nowadays moved towards the secondary utilization approach which closes the loop in the material flow process, i.e. reuse via remanufacturing, reconditioning, repairing, etc. However, the economic benefit of different End-of-Life options for automotive components remain unclear; there is a need to quantitatively evaluate the economic benefit of different End-of-Life options. This project aims to develop a cost estimation model to assess the cost-effectiveness between recovery alternatives for End-of-Life automotive components. Firstly, the remanufacturing process for automotive components has been modelled consisting different stages and activities involved. Thereafter, cost breakdown structure has been established, and the cost elements in each stage and the cost drivers for each cost element have been identified. Next, cost estimation relationships between cost elements and cost drivers have been established. Finally, a cost estimation model has been developed, validated and implemented in MS Excel@ platform. Two case studies comparing different End-of-Life options of crankshaft and composite oil pan by using the developed cost model has been performed; it has been shown that the developed cost model can inform which End-of-Life option is more cost-effective.