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Exploring Dynamic Production Cost and Total Cost of Ownership to Support Purchasing Strategy

by Maisha Mulk

Institution: KTH
Department: Industrial Engineering and Management (ITM)
Degree:
Year: 2022
Keywords: Engineering and Technology; Teknik och teknologier
Posted: 3/25/2025
Record ID: 2272491
Full text PDF: http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-318384


Abstract

The continued rise of EVs, as well as other industries seeking to electrify, will necessitate a capacity of LIB cells that are more than tripled by 2030. As LIB cell customers are demanding cheaper, and customized cells with high quality, requires LIB producers to lower their LIB production cost. One promising opportunity for reducing the cell production cost is reducing the cost of purchasing LIB production equipment. However, only considering the purchasing price may lead to poor and inattentive purchasing decisions and as a result of that, the TCO of the equipment should also be considered. The study will examine how the production cost and TCO of LIB production equipment are assessed to support the purchasing strategy. A qualitative approach was adopted, where the case study was exploratory. This as the study looked at what drives cost discrepancies in equipment purchases and how different methodologies should be used to make sound purchasing decisions. Semi-structured interviews along with data collection retrieved from the case company laid the base of this research. Based on the conducted research, the study presents five insights. First, an established strategic purchasing strategy will provide resilience in a disruptive environment. Second, adopting a TCO perspective will provide both the purchasing strategy and process with a holistic view. Third, a standardized TCO model, adapted to LIB production, is required for successful implementation to ensure alignment with the purchasing strategy. Fourth, cross-functional alignment is required to implement a TCO analysis, and fifth, only assessing production cost is not ideal for reducing TCO. Den ökande efterfrågan för elbilar, tillsammans med andra industrier som önskar att elektrifieras, kommer kräva en kapacitet av LIB celler som är mer än tredubblad till 2030. Kunderna efterfrågar billiga och skräddarsydda LIB celler med hög kvalité, vilket resulterar i att tillverkare av LIB celler måste sänka deras produktionskostnad. En lovande möjlighet för att sänka produktionskostnaden för LIB celler är genom att minska inköpskostnaden av maskinerna. Men att bara beakta inköpspriset kan leda till dåliga och icke välgrundade inköpsbeslut. Därför borde även den totala kostnaden av ägarskap (TCO) tas i beaktning. Denna studie kommer därför utforska hur produktionskostnaden samt TCO av maskiner (ämnade för LIB cell tillverkning) kan analyseras för att ge implikationer till inköpsstrategin. Ett kvalitativt tillvägagångssätt antogs, där fallstudien var av utforskande karaktär. Detta då studien tittade på vad som driver kostnadsskillnader i inköpskostnaden av maskinerna och hur olika metoder bör användas för att fatta välgrundade inköpsbeslut. Semistrukturerade intervjuer tillsammans med datainsamling hämtad från caseföretaget lade grunden för denna forskning. Baserat på den genomförda studien kan fem insikter presenteras. För det första, en fastställd och etablerad inköpsstrategi kommer bidra med motståndskraft i en föränderlig omgivning.…

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