Implementation of a new system for estimating and controlling launch costs in VW-Navarra

Abstract

This paper analyses the implementation of a new system for estimating and controlling launch costs in VW-Navarra. It castles with the definition of a new strategic map, called “Mach 18 Factory”, which places particular emphasis on increasing profitability through greater control of costs. In line with these organizational goals, this project aims at optimizing the way of forecasting and managing launch costs, by creating a computer assisted tool which significantly improves the control of these costs. This tool was able to calculate total launch costs, assign them to specific areas and time them. In addition, it elaborates one budget per area, monitors and controls launch costs by obtaining and analyzing possible deviations and finally, it summarizes the information graphically. This new process and the computer assisted tool were put into practice for forecasting and managing launch cost for the new model VW270. The method implied in this project increased the coordination among areas and creates one responsibility post per area