Evaluation of Alternative Materials for BIW Design

Stephanie Dalquist

Seward Matwick

Bill Nickerson

8 April 2002

Mercedes-Benz Strategy

• Provide the world’s best high-end automobiles

• Maintain industry leadership in technology and design

• Maximize profits while delivering consumer and environmental benefits

Motivations for Change

• Maintain profitability• Meet environmental mandates

– Recycling laws– Fuel efficiency

• Balance the competing mandates while still achieving profitability– Increased fuel efficiency leads to decreased

recyclability

Body In Weight Design Proposal• Production volume: 50,000 per year• Materials Selection:

– Aluminum Roof– Steel Quarter Panel Inner– SMC Quarter Panel Outer– Aluminum Floor

Base Case Comparison

New Design DifferenceTotal Weight 2685.6 lbs -425.4 lbsBIW Cost $2128 -$221Mileage 23.1 MPG +1.5 MPGRecyclable Material 66.2% -3.4%

BIW Cost vs. Vehicle Weight

260026502700275028002850290029503000305031003150

1500 2000 2500 3000 3500 4000

BIW Cost ($)

Vehi

cle

Wei

ght (

lbs)

Vehicle Weight vs. Fuel Efficiency

21.4021.6021.8022.0022.2022.4022.6022.8023.0023.2023.40

2600 2700 2800 2900 3000 3100

Vehicle Weight (lbs)

Fuel

Effi

cien

cy (m

pg)

Fuel Efficiency vs. Recyclability

58

60

62

64

66

68

70

72

21.5 22.0 22.5 23.0 23.5

Fuel Efficiency (MPG)

Rec

ycla

bilit

y (%

)

Sensitivity Analysis: Production Volume

1000

1500

2000

2500

3000

3500

4000

4500

1 6 11 16 21 26 31 36 41 46 51

Materials Selection Case #

BIW

Cos

t ($) 40K/yr

50K/yr80K/yr

Sensitivity Analysis: Al Prices

16001800200022002400260028003000320034003600

1 6 11 16 21 26 31 36 41 46 51

Materials Selection Case #

BIW

Cos

t ($)

Al at $1.10Al at $1.50Al at $1.75

Design Conclusions

• Increased fuel efficiency with a slight reduction in recyclability

• Robust results protect company from the unexpected

• Maintains profitability• Preserves technological edge

ExtrasChange in Profit with Changing Al Prices

-1000-750-500-250

0250500750

10001250

1 6 11 1 2 2 3 3 4 4 51

Materials Selection Case #

Chan

ge in

Pro

fit p

er

Vehi

cle

($)

Al at $1.10Al at $1.50Al at $1.75

Extras

Changes to Yearly Profits with Production Volume

-6.E+07

-4.E+07

-2.E+07

0.E+00

2.E+07

4.E+07

6.E+07

1 6 11 1 2 2 3 3 4 4 51

Materials Selection Case #

Chan

ge to

Yea

rly P

rofit

40K/yr50K/yr60k/yr

ExtrasRecycle % and Change in Profit

-1000

-500

0

500

1000

1500

59 60 61 62 63 64 65 66 67 68 69 70

Recycle %

Chan

ge in

Pro

fit p

er

Vehi

cle

($)

Extras

Recycling Percentages by Case

596061626364656667686970

1 6 11 16 21 26 31 36 41 46 51

Materials Selection Case #

Perc

ent R

ecyc

led

Thoughts

• Revamp current recycling/fuel efficiency laws– Counterproductive– Provide Mercedes-Benz with a clearer objectives

• Require a standardized way to calculate recycling percentages– Expectations too high for total car– Reasonable for body in white