A parametric model for cost estimation in bidding activities

When is an New Product Development (NPD) successful? Three levers must be kept under control: customer satisfaction, Time To Market (TTM) minimization and cost minimization. The last automotive trends stress the minimization of TTM. It implies a reduction of the time that OEM companies have to present their offers during the car maker quotation phase. This thesis proposes a parametric model for predictive cost estimation of the components that OEMs purchase from their suppliers. By releasing themselves from their suppliers, they manage to decrease the time required to generate the offer. A second objective is to provide a benchmark that allows to the company to control supplier efficiency by reducing information asymmetry. Thanks to a database built for the case study OEM company, it was also possible to develop a neural network model to verify which one provided a better predictive estimate.