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Car manufacturing costs breakdown [Archive] - Auto Industry Forum

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Douglas Gilson
04-30-2005, 07:40 AM
Professor Douglas Gilson - I developed a Theory of Games practical Simulation Model. I will use it to simulate the auto industry strategies.
I do need the carīs manufacturing costs breakdown.
Can be by model, by brand, or a car company mean overall manufacturing costs. By costs breakdown can be any compatible map as :
Revenue
Labor
Material
Administrative ( Fixed costs)
Sales
Tax
Profit
I appreciate any information. Douglas Gilson

mchastek
05-01-2005, 10:43 PM
Professor Douglas Gilson - I developed a Theory of Games practical Simulation Model. I will use it to simulate the auto industry strategies.
I do need the carīs manufacturing costs breakdown.
Can be by model, by brand, or a car company mean overall manufacturing costs. By costs breakdown can be any compatible map as :
Revenue
Labor
Material
Administrative ( Fixed costs)
Sales
Tax
Profit
I appreciate any information. Douglas Gilson

Douglas - thanks for the great question! It's VERY interesting to me to see Game Theory applied to the Automotive Industry, so I'd love to see what you're doing with this. I have a very technical background (BS and MS in Computer Science), and also a BS in Economics... so I've had some exposure to game theory.

In doing some searching, I came across the following page (info from 2001) which has a breakdown consisting of Overhead, Tooling, Machining, Energy, Labor, Materials, and Other costs: http://www.tms.org/pubs/journals/JOM/0108/Kelkar-0108.html. More specifically, take a look at this chart: http://www.tms.org/pubs/journals/JOM/0108/fig9.gif. It looks like the breakdown is different for different vehicles.

If this isn't the sort of thing you're looking for, let me know and I'll see what else I can find.

Good luck to you on your project!

-Mark

Douglas Gilson
05-03-2005, 12:19 PM
Simulation Model for auto industry Strategic Formulation- I developed a Theory of Games complex simulation model. A practical model to determ the "Dominant Strategy" the winning strategy in the market conflict resulting from the marketīs participation
( %) dispute. From your firmīs executive members > Set teams. One "managing" your firm, others teams "managing" competitors. The teams interact (simetrically) in the market(the simulation model) formulating attack strategies and counter-attack responses. Each one trying to improve its market-share %. Objetive > Determ the strategy which provides the maximum result/profit considering the competidors moves/actions in the market. The Strategic plan its a compleat set of strategies available for us with the best response for each of the possible competidors-response strategies. Considering we will launch a new car, what if we set medium price with best quality and the competidor counter-move with a low price and heavy propaganda ?
What its the best strategy? Vertical manufacturing or outsourcing for a high quality car
What its the best responce if our competidors start a price war and we have a higger manufacturing costs ?
How the market will respond to our product with a relation quality X cost diferent from the competidor quality x cost ?
How much the market will accept we increase our productīs price ? What is the competidors best responce?
Considering our manufacturingīs cost-structure what the best price-quality relation we should use for a new car to be a sucess against our competidors?
What its the best strategy to set entry-barriers for a new product?
How should we respond to defend our main product ? With more manufacturing capacity or others strategies? What its our best response strategy ?
My model can simulates :
Pure strategy or Mixed-strategy(probabilistic)
Compleat information or imperfect information
Simetric Game or Sequential Game(first-mover)
Market - Free entry or Entry Barrier
Signaling
Screening
Auction
The results are computed simetricly considering the diferent competidors actions effects(interact) in the others competidors.
The model computes the market shares ( % ) using the "customer preference" :
Price, quality, brand recognition, imediate delivery, customers-loyalty.
To run the simulation we should figure out the possile scenarios with its data : Market size, products prices, manufacturing capacities, manufacturing costs, markets growth, parameters and the possible stategies.
The model shows: market, manufacturing, and costs maps for the competidors.
The model can be customized for diferent industries. I use the simulation model for MBA teaching and consulting. I can provide more specific details. Douglas Gilson