COST EVALUATION GUIDELINES

Foreword:
In real life, preparing an accurate bill of materials and cost accounting give Engineers a clarity on the
number of components used, time taken for production and calculation of cost per part. Such
classification allows for control of cost and ascertain the profitability of processes which in turn helps take
strategic decisions to manufacture parts more efficiently.
The BAJA SAEINDIA’s cost event is an effort to put students through the same thought process and help
students learn the nuances of cost accounting and the benefits of maintaining bill of materials in the
product development process

Objective:
Cost is one of the most critical aspect of any commercial entity but the event here, is to not only report
the most optimum cost of the component in the prototype or production stage, but instead focusing on
how well the team understands what has gone into their part and applying their learning of procurement
and manufacturing techniques to optimize the cost, labor, time, material wastage and various overhead
costs.
Cost Event consists of two related sections:
1. Cost Report: The cost report provides all the background information to verify the vehicle’s actual
cost and also if the teams want to present any design features or fabrication processes that are
innovative or are expected to result in significant cost savings.
2. Prototype Cost: The prototype cost is the actual cost gone in fabrication of the vehicle and the
points related thereto.

Cost Report (Required Submission):

The Cost Report may contain a maximum of two sections:
Report Section 1 - Overview (Optional):
The optional overview is intended to give each team the opportunity to point out, and briefly comment
on, any design features or fabrication processes that are innovative or are expected to result in significant
cost savings. Teams may also use the overview to explain items or processes that might appear to be
discrepancies within the report. The overview section is limited to a maximum of four (4) pages and is
optional. This should be included as part of the Cost Documentation (.pdf) file.

Report Section 2 - Cost Documentation:

This section includes copies of receipts, invoices, price tags, catalog pages, on-line prices, or other
documentation, to substantiate the costs of the parts and materials of any item costing more than Rs.200.
Cost documentation must be at full retail Indian prices. The use of foreign receipts, purchases from
discount sites such as Craig's List, eBay or junk yards are not allowed. The report is expected to be
comprehensive, well documented, truthful, and accurate.

Prototype Cost (Required Submission):

Costing Sheets:
The core of the report is the series of costing sheets. This section must contain the one-page summary
sheet broken up into the individual subsystems. Each subsystem needs an individual subassembly sheet
(Form A). Note that Vehicle Assembly Labor cost is for the labor it takes to assemble a subassembly to
the frame. All fabricated parts on the sub-assemblies sheets (Form A) require a Form B. Note that the
sub-system assembly time is the time it takes to assemble all the parts in that assembly together.
The team can download the costing sheet template from the below link:
https://bit.ly/CostEventTemplate

Note:
• This document should not be modified from its current form. This includes password protecting
and embedding macros. Teams will receive zero (0) points for Cost if the report is in the incorrect
format or the files have been modified.
• Team should ensure that while submission of this sheet it is in either .xls or .xlsx (no macros)
extension.
Penalties:
• If the judges find that the costing of some components is inadequate and unjustified where team
has done some manipulation in order to reduce cost, the cost of the component whose costing is
wrong will be made 3 times the actual cost projected by the teams and will be added to the
summary cost.

Cost Component Categories:

Teams must put items that are specified in the correct component categories and subcategories or the
items will not be considered. See Cost Template for more details on component categories.

Cost Report – Submission Format:

Teams are required to follow the following procedure to submit the Cost Docket to BAJA SAEINDIA

Submission Link: https://bit.ly/CostSubmission

Last Date of Submission 3rd December 2021, 23:59 pm IST

File
Document Submission File Name
Type
Report template Compulsory .xlsx/.xls Team ID_Cost Report.xlsx
Cost Documentation & Cost
Compulsory .pdf Team ID_Cost Documentation.pdf
Overview

Presentation Guidelines

Presentation should include the details and explanation of costing sheet submitted earlier.
Teams have the flexibility regarding the format and pages of presentation, but teams should ensure that
presentation should be explained within 25 Minutes in front of a panel consisting of judges from the
automotive industry. The presentation will be done virtually over an online platform. The schedule for
the presentation slotting will be released separately on the BAJA SAEINDIA forum.
Presentation Format:
• Each team will be evaluated over a 35 minute time period which includes Presentation Setup,
Introduction, Presentation, Q&A and feedback by the judges.
• Maximum of 5 team members are allowed for the presentation showing teamwork.
Cost Finals:
Cost finals have been introduced this year to evaluate the teams based on cost adjustment they might have done
during the fabrication of vehicle.
Rules:
• Cost Finals will be evaluated separately in Phase 3 for 10 points.
• Top 10 teams from mBAJA and top 5 teams from eBAJA, participating in phase 3, will be selected for Cost
Finals.
• Teams will have to bring the costing sheet, cost documentation and an additional cost adjustment form, if
applicable, at the event site for evaluation.
• Judges will evaluate the costing sheet along with the vehicle and any discrepancy found, which are not
reported in cost adjustment form, will be penalized.
• Marks obtained in Cost Final will be added to the overall score of the Cost Event.

Judging Criteria:
The costing sheet is to be judged based on its accuracy to the components reported and the team’s
understanding of the report. The report will be reviewed for cost accuracy regarding the material/process
tables and to ensure that the teams have followed all the procedures and report guidelines.

Judging criteria (not limited to):

• Comprehensive reporting-Team must report all process and parts utilized in the design
• Team’s detailed explanation of the components used
• Cost effectiveness of part production technique / methods
• Ability of team to addresses and participate in discussion with the judges based on the question
raised by the panel
• Implementation of manufacturing techniques that reduces the production lead time and efforts
• Impact of the cost on design, Material Selection & rationale
• Recyclability and Environmental Impacts
• Ability of meet Engineering Specifications
• Human factors considered, Cost per unit.

All The Best!!