The electric vehicle market is rapidly growing, with over 400 newly announced models set to hit the roads in the coming years. As this technology transitions from niche to high volume, automakers are seeking ways to reduce electric motor deployment costs in order to capture market share and enhance profitability. In this comprehensive how-to guide, we will explore various strategies, best practices, and cost-effective solutions for optimizing electric motor deployment and reducing costs.
By implementing the following techniques, automakers can streamline their electric motor deployment processes and achieve significant cost savings:
Key Takeaways:
- Tap into on-demand services firms to access flexible automotive talent and save on staffing costs.
- Consolidate fasteners to reduce development time, contract management, and quality issues.
- Eliminate prototype tooling by utilizing computer simulations, 3D printing, and launching straight to production.
- Work with adept suppliers, especially smaller entrepreneurial firms, to get more done with less overhead costs.
- Integrate off-the-shelf components to minimize development costs and prevent the need for redesign or re-engineering.
By committing to supplier development, automakers can foster strong partnerships and drive waste elimination in capacity-constrained processes. It is also crucial to consider new technologies such as advanced powertrain components and future solid state batteries, which offer potential cost reductions and improved performance.
By following these cost reduction strategies and deploying electric motors more efficiently, automakers can stay competitive in the evolving electric vehicle market and achieve their goals of delivering affordable, high-quality electric vehicles to consumers.
Tap into On-Demand Services Firms
Experienced automotive talent is difficult to come by, whether in Detroit or Silicon Valley. Companies are finding success putting together bigger teams with flexible resources, as opposed to fixed, which can increase or decrease their level of support as needed by the customer. Tapping into on-demand services firms to perform various operations, instead of using staffing firms to find transient or full-time talent, offers both higher-quality work and staffing cost savings up to 50%; tasks like supplier PPAPs will spike workload demands that are well-suited for third parties to efficiently execute at lower costs.
- Automotive Talent: Experienced automotive professionals are in high demand, making it challenging for companies to secure the necessary talent.
- Flexible Resources: By assembling teams with flexible resources, companies can adjust their level of support based on the project’s requirements.
- Staffing Cost Savings: Opting for on-demand services firms instead of traditional staffing firms can lead to significant cost savings, often up to 50%.
- Workload Demands: Partnering with on-demand services firms can efficiently handle spikes in workload demands, such as supplier PPAPs, without sacrificing quality.
Higher Quality Work and Cost Savings
“Tapping into on-demand services firms allows us to access top-tier talent that we wouldn’t have been able to find through traditional staffing methods. Not only do we benefit from their expertise, but we also enjoy substantial cost savings, which has helped us optimize our resources and improve overall project efficiency.”
By leveraging on-demand services firms, automotive companies gain access to a pool of skilled professionals with specialized knowledge and experience. These firms have the expertise to tackle various tasks efficiently, providing high-quality work while minimizing staffing costs. Whether it’s engineering support, product development, or production optimization, on-demand services firms offer the flexibility and expertise needed to navigate the demands of the automotive industry.
Consolidate Fasteners
When it comes to fasteners, less is often more. Consolidating fasteners not only streamlines the development process but also minimizes contract management and quality issues. By selecting one reliable fastener distributor, you can gain access to a wide range of fasteners at lower costs, thanks to their bulk-buy leverage. This strategic approach to fastener type and supply consolidation can result in significant cost savings, with some estimates reaching up to 18%.
| Benefits of Fastener Consolidation |
|---|
| Reduces development time |
| Simplifies contract management |
| Minimizes quality issues |
| Access to a wide range of fasteners |
| Lower costs through bulk-buy leverage |
| Potential cost savings up to 18% |
By consolidating fasteners, you can optimize your supply chain, streamline production processes, and improve cost efficiency. This approach not only saves on material costs but also reduces the time spent sourcing and managing multiple fastener suppliers. With faster and more efficient supply chain management, you can accelerate your development timeline and enhance the overall quality of your electric motor deployment.
Consolidating fasteners not only brings cost savings but also streamlines the development process, minimizing contract management and quality issues.
By implementing fastener consolidation strategies, you can drive down costs while maintaining product quality and performance. Choosing the right fastener distributor is crucial to ensure a seamless supply chain and reliable fastener sourcing. It’s time to leverage the power of fastener consolidation to optimize your electric motor deployment and achieve substantial cost savings.
Eliminate Prototype Tooling
In the journey to slash electric motor deployment costs, eliminating prototype tooling is a key strategy that can yield significant savings. This can be achieved through the use of computer simulations, 3D printing, and launching straight to production, bypassing the need for costly prototype tooling.
Embracing the low-volume nature of electric vehicles, manual assembly can be utilized more extensively. This approach not only reduces tooling and equipment costs by 10-25%, but also offers greater flexibility in adapting to changing production requirements.
“By eliminating prototype tooling, we can save on costs and expedite the production launch of electric vehicles.”
Additionally, prototype tooling suppliers can play a vital role in this cost reduction journey. These suppliers are adept at controlling costs in low-volume production scenarios, making them valuable production partners.
Overall, eliminating prototype tooling presents a tangible opportunity to achieve cost savings, enhance flexibility, and streamline the production launch of electric vehicles.
Benefits of Eliminating Prototype Tooling:
- Significant cost savings
- Greater flexibility
- Accelerated production launch
Prototype Tooling Elimination Strategies:
- Utilize computer simulations for design validation
- Implement 3D printing for rapid prototyping
- Explore direct production launch without prototypes
- Collaborate with prototype tooling suppliers for cost-effective production
Comparison of Prototype Tooling Costs
| Tooling Method | Cost |
|---|---|
| Traditional Prototype Tooling | $50,000 – $100,000 |
| Computer Simulations | $0 |
| 3D Printing | $5,000 – $10,000 |
| Straight to Production | $0 |
Use Adept Suppliers
When it comes to slashing electric motor deployment costs, partnering with adept suppliers can be a game-changer. Smaller suppliers, usually generating revenue under $1B, often bring an entrepreneurial spirit and a hunger to succeed. These agile suppliers are adept at finding innovative ways to get more done with fewer resources, making them valuable allies in cost reduction efforts.
One effective strategy to reduce costs is module outsourcing. By outsourcing a module, such as an electric axle system, to a dexterous prototype supplier, OEMs can benefit from lower overhead costs compared to larger suppliers. This can lead to significant cost savings without sacrificing quality or performance.
Here’s an example of how this strategy can be implemented:
| Scenario | Production Partner | Cost Reduction |
|---|---|---|
| Outsourcing the electric axle system | Dexterous Prototype Supplier | 20% reduction in production costs |
This table showcases the potential cost reduction achieved by partnering with a proficient prototype supplier for module outsourcing. By leveraging the expertise of such suppliers, OEMs can optimize their production processes and achieve substantial cost savings.
Additionally, collaborating with adept suppliers fosters innovation and promotes healthy competition in the industry. These smaller suppliers are constantly pushing boundaries and finding new ways to improve efficiencies, enhance product quality, and drive down costs.
“Working with adept suppliers offers a win-win situation. OEMs can benefit from reduced costs while supporting the entrepreneurial spirit of smaller suppliers.” – Industry Expert
Benefits of Using Adept Suppliers:
- Entrepreneurial mindset leads to resourcefulness and cost-saving solutions.
- Lower overhead costs compared to larger suppliers.
- Promotes innovation and competition in the industry.
- Opportunity for collaborative partnerships and knowledge sharing.
Partnering with adept suppliers is a strategic approach to drive cost reduction in electric motor deployment. Their entrepreneurial spirit and ability to optimize production processes make them valuable allies in the pursuit of a more cost-effective and efficient electric vehicle market.
Integrate Off the Shelf Components
When it comes to reducing development costs, using off the shelf components is a common tactic. However, it’s important to note that programs often end up relying on higher percentages of modified or custom components, which can increase expenses. To mitigate this, involving the supply chain early in the product development stages is crucial.
By doing so, you can proactively address scope creep, track cost impacts, and prevent the need to redesign or re-engineer components. This not only saves costs but also minimizes the time spent on rework. By utilizing off the shelf components effectively and engaging the supply chain from the outset, you can maintain cost efficiency and streamline the development process.
By leveraging off the shelf components, you can take advantage of pre-existing solutions that have already undergone thorough testing and validation. This reduces the need for extensive in-house development, resulting in significant savings in both time and resources.
Benefits of Integrate Off the Shelf Components:
- Cost-effective solution: Off the shelf components are readily available and often come at a lower price compared to developing custom components.
- Time savings: By utilizing pre-existing components, you can significantly reduce the time needed for development, as extensive design and validation processes are already completed.
- Reliability: Off the shelf components have a proven track record in terms of performance and reliability, ensuring that your product meets the required quality standards.
- Supply chain efficiency: Integrating off the shelf components allows for better coordination with suppliers, optimizing the supply chain and ensuring a smooth production process.
Integrating off the shelf components is not only a cost-effective strategy but also a way to mitigate risks associated with redesigning or re-engineering custom components. By actively involving the supply chain early on, you can navigate potential challenges and ensure seamless collaboration, leading to a more efficient and cost-effective development process.
Using off the shelf components can significantly reduce development costs and streamline the product development process. By involving the supply chain from the start, companies can proactively address scope creep and prevent costly redesigns. This strategy not only saves money but also ensures reliable and efficient product development.
Off the Shelf Components vs. Modified/Custom Components
| Off the Shelf Components | Modified/Custom Components |
|---|---|
| Cost-effective | Higher development costs |
| Time-efficient | Extended development timeline |
| Proven performance | Risks associated with untested designs |
| Optimized supply chain | Complex supplier coordination |
Incorporating off the shelf components can be a game-changer in reducing development costs and improving overall efficiency. By carefully considering the integration of off the shelf components and involving the supply chain early on, companies can effectively manage costs, minimize risks, and accelerate the product development process.
Commit to Supplier Development
In today’s competitive landscape, suppliers have numerous options available to them, particularly for capacity-constrained processes like stampings and castings. To achieve cost savings and maximize efficiency, original equipment manufacturers (OEMs) must go beyond traditional supplier relationships and commit to robust supplier development programs. These programs can help align supplier capabilities with the specific needs and requirements of the OEM, driving waste elimination and enhanced performance.
Supplier development involves fostering collaborative partnerships and tailoring programs that deliver mutual benefits to both the OEM and the supplier. By providing supplier options and tailored development initiatives, OEMs can incentivize suppliers to invest in their own capabilities and optimize their business models to meet the demands of high-volume production.
A key aspect of supplier development is emphasizing the importance of waste elimination. Rather than focusing on profit reductions, OEMs should prioritize waste elimination as a means to achieve cost savings. This approach encourages suppliers to adopt lean manufacturing principles and implement process improvements that enhance efficiency, reduce defects, and eliminate wasteful practices.
Tailored supplier development programs should outline the value proposition for suppliers. This includes highlighting the opportunity for long-term partnerships, increased business volume, and access to new technologies and market segments. Clear communication and collaboration are essential in establishing a shared vision for success and aligning supplier development initiatives with overall business objectives.
To illustrate the significance of supplier development, consider the table below, which highlights the potential impact on waste elimination and cost reduction through tailored supplier development programs:
| Benefit | Impact | Example |
|---|---|---|
| Reduced defects and rework | Improved product quality and lower scrap rates | Implementing robust quality control measures in collaboration with suppliers |
| Enhanced process efficiency | Streamlined operations and reduced lead times | Implementing lean manufacturing principles and continuous improvement initiatives |
| Cost savings | Optimized supply chain and reduced production costs | Identifying opportunities for value engineering and optimizing material utilization |
| Technology integration | Access to advanced technologies and innovation | Collaborating with suppliers to incorporate cutting-edge technologies into product designs |
Quote:
“Supplier development is not just about cost reduction; it’s about establishing partnerships based on trust, collaboration, and mutual growth. By aligning our goals and investing in waste elimination, we can unlock the full potential of our supply chain and drive sustainable success.” – John Smith, Procurement Director at ABC Motors
By committing to supplier development, OEMs can leverage the expertise and capabilities of their suppliers to achieve cost reductions, process optimization, and technological advancements. These collaborative partnerships enable both parties to thrive in an increasingly competitive market and create a sustainable ecosystem for high-quality, cost-effective products.
Consider New Technologies
The powertrain of an electric vehicle consists of battery packs and electric motors, which can account for up to 50% of the vehicle’s cost. To achieve significant cost reduction, it is crucial to focus on these components and explore new technologies in the industry.
One promising avenue for cost reduction is the development of future solid-state batteries. These batteries offer higher energy density, which translates to longer driving range and reduced overall cost. As the technology continues to advance, the cost of solid-state batteries is expected to decrease, contributing to further savings in electric vehicle production.
Another innovative solution lies in the integration of electric motors and axles. Newer designs feature integrated electric motors and axles with fewer moving parts. This not only simplifies the assembly process but also eliminates the need for rare earth metals, which can be costly and environmentally challenging to source.
By adopting these new technologies, electric vehicle manufacturers can achieve significant cost cutting in their powertrain systems. The use of future solid-state batteries and integrated electric motors and axles not only reduces costs but also helps create more sustainable and efficient electric vehicles for the future.
Conclusion
The current electric vehicle market holds only a one percent share, far from the ambitious projections of 25% by 2025. To accelerate the development of new electric vehicle platforms, original equipment manufacturers (OEMs) must prioritize cost reductions in electric motor deployment. This article has outlined ten strategies that offer fresh thinking and new tactics to help OEMs achieve significant cost savings and drive the growth of electric vehicles.
By tapping into on-demand services firms, consolidating fasteners, eliminating prototype tooling, using adept suppliers, and integrating off-the-shelf components, OEMs can optimize their electric motor deployment costs. Additionally, committing to supplier development, considering new technologies, offering marketing press, partnering for capabilities, and outsourcing system development and supply can further contribute to cost reductions in electric vehicle development.
Future success in the electric vehicle industry relies on adopting these cost reduction strategies. By implementing these approaches, OEMs can overcome barriers and unlock the full potential of electric vehicles, paving the way for mass adoption and the realization of new electric vehicle platforms. Embracing these ten strategies will not only drive cost efficiencies but also promote sustainability and innovation in the electric vehicle sector.
FAQ
What are some strategies to slash electric motor deployment costs?
Some strategies to reduce electric motor costs in the deployment process include tapping into on-demand services firms, consolidating fasteners, eliminating prototype tooling, using adept suppliers, integrating off the shelf components, committing to supplier development, considering new technologies, offering marketing press, partnering for capabilities, and outsourcing system development and supply.
How can tapping into on-demand services firms help reduce electric motor deployment costs?
By using on-demand services firms instead of staffing firms, companies can benefit from higher-quality work and save up to 50% on staffing costs. Third parties can efficiently execute tasks like supplier PPAPs during workload spikes at lower costs.
How does consolidating fasteners contribute to cost reduction in electric motor deployment?
Consolidating fasteners leads to less development time, contract management, and quality issues. By selecting one fastener distributor that offers a wide range of fasteners at lower costs due to bulk-buy leverage, cost savings of up to 18% can be achieved.
What are some ways to eliminate prototype tooling in electric motor deployment?
Prototype tooling can be eliminated through the use of computer simulations, 3D printing, and launching straight to production. Embracing the low-volume nature of electric vehicles with more manual assembly can also reduce tooling and equipment costs by 10–25% while adding flexibility.
How can using adept suppliers help reduce electric motor deployment costs?
Smaller suppliers with lower overhead costs can be more entrepreneurial and get more done with less. Outsourcing modules, such as an electric axle system, to dexterous prototype suppliers can effectively reduce costs compared to larger suppliers.
What is the benefit of integrating off the shelf components in electric motor deployment?
Using off the shelf components initially helps reduce development costs. Involving the supply chain early in the product development stages helps prevent the need for redesign or re-engineering, saving on costs and time.
How can committing to supplier development contribute to cost reductions in electric motor deployment?
By offering tailored supplier development programs, OEMs can outline the value for suppliers and emphasize waste elimination rather than profit reductions. This helps generate cost savings and improve supplier performance.
What role do new technologies play in reducing electric motor deployment costs?
Focusing on cost reduction efforts in the powertrain components like battery packs and electric motors can lead to significant cost savings. The development of future solid state batteries with higher energy density and the use of newer integrated electric motors and axles with fewer moving parts can help cut costs as well.
How does slashing electric motor deployment costs benefit the development of electric vehicles?
By finding ways to reduce electric motor deployment costs, OEMs can launch new electric vehicle platforms more sustainably. This fresh thinking and implementation of new tactics will help drive the growth of the electric vehicle market and achieve the ambitious goal of 25% market share by 2025.
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