Cost Modelling of Connecting Rod
Project Scope
To determine the product cost of Connecting rod (Forged Steel).
Business Challenges
- Optimized manufacturing process
- Design for Manufacturing (DfM)
- Product cost is calculated for material and manufacturing cost
- Profit margin is based on severity of the product
- Tool and fixture costs are not included
ARi’s Solutions
- Product cost at customer place (A) = USD 86.59/Qty
- Product cost at external vendor (B) = USD 66.61/Qty
- Difference in cost (A-B) = USD 19.98/Qty (23%)
- Output:
- Part Name: Connecting Rod
- Material Type: Forged Steel
- Demand: 5000 Nos/Year
- Size of the Part: 11.81×4.72×1.97”
- Weight: 15.98 Lbs (7.25 Kgs)
ARi’s Value Proposition
- Bought out cost is 23% lesser than in-house cost (Hence recommended to
outsource) - Tools: M.S Office and Costimator
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Case Study
Case Studies
Related
https://www.arigs.com/wp-content/uploads/2025/11/Cost-Modelling-of-Connecting-Rod.pdf