ASSIGNMENT 2

1. Explain and discuss what a system is and how we can model systems, including
quality management systems. Introduce the object-oriented, layered quality
management system / process model. What are the interacting objects, layers,
inputs, outputs, controls and resources. How does a multi-layer quality process
model help engineering management to assure high quality in any organization?
Don't forget to include a technical illustration / image, that you have created to
illustrate this challenge / solution (1 point of 10).

A system is a set of components or elements that work together to achieve a specific goal
or set of goals. System components can be physical, such as the parts of a car, or they can
be abstract. Systems can also be open or closed, meaning that they can interact with their
environment in different ways. A system can be broken down into several components such
as inputs, processes, and outputs. Data flow diagram is a graphical representation using a
standardized set of symbols and notations to describe a system through data movement.
Priority gauge shows how important the data flow is. Input is where data enters the
process, we can identify it has a variable. Control side is where data somehow limits or
controls the process. Resource side is where data describes the available manpower,
hardware, software etc. resources for executing the process. The output side is where data
leaves the process. System emphasis on purpose and viewpoint of the system. Complex
system models include layer to deal with complexity. Preferably, there should be no more
than 5-6 layers in a system model. An innovation system model for quality system design,
including feedback loops for cont. quality improvements. It covers customer requirements
analysis.

QMS is formalized system that documents processes, procedures, and responsibilities

for achieving quality. Also, it is collection of business processes with the purpose of
ensuring that the quality of products, processes or services meet or exceed customer
expectation requirements. Polymorphism allows for greater flexibility and extensibility in
the quality management system. Using a process helps keep things in track. Employees are
aware of the basic process. It is a guild line to start off a new project. There are tools such
visio to help look at process by layers. Each layer represents sub-systems. For example, my
company used flow charts for organization such as supplier chargeback process. This can
be validated by confirming if the flow diagram matches the process. I believe this is the best
solution. It significantly improves the QMS system. It helps to see previous process and see
the difference in current process.

Figure 1:
Figure 1: The image above shows component of a system. This is a simple flow diagram.
This image is created by Hina Desai.

2. Discuss product innovation process models for customer retention. Design a simple
quality-focused example, that you have created. Don't forget to include a technical
illustration / image, that you have created to illustrate this challenge / solution (1 point of
10).

The five process steps of the innovation model that organizations can use to keep products up
to date include target the opportunity, explore the idea, develop alternatives, optimize the
solution, and commercialize the innovation. If the customer loyalty is consistently providing
greater value, greater quality, greater cost, and greater service, then the key to providing superior
value is innovation. Innovation is reducing the cost of the product and increase quality of the
product and service along with the market trend. As customers wants are changing, the
innovation process is helping to determine the gap in fulfilling those desires. Not only innovation
is making customers daily life easy but also focuses on being a green environment. An
Innovation model provides a detailed framework to identify, advance, and implement ideas.
Thus, focusing on adopting methods to create the needed value.
 For example, Henry Ford's invention of the world's first moving assembly line. This
process change not only simplified vehicle assembly but shortened the time necessary to produce
a single vehicle from 12 hours to 90 minutes. New product development can be used in process. I
don’t think that this is the best process. I would start with research customer desires, determine
market gap, idea generation in terms of eco-friendly and efficiency, resources, development,
manufacturing, marketing, and sales. Innovation is required so that the company stands out from
the others, and it is unique. It’s important to sell products based on what the customer is looking
for. Innovation is non-stop as people would like to be the best version of themselves. It involves
a lot of work when developing an idea and commercializing it. There is always a risk, even if it
is an innovation. Does the product fulfill customers’ requirements? Is the product non-defective?
All of this can be answered using voice of customer. It will help determine which products got
rated.

Figure 2: The image below shows the new product development process. There are subcategories
such as APQP, control plan, etc. which help get a better understanding of the product phase. This
image is created by Hina Desai.

3. Discuss quality partnering and strategic alliance process models. How is your
company doing this? Design a simple quality-focused example, that you have
created. Don't forget to include a technical illustration / image, that you have
created to illustrate this challenge / solution (1 point of 10).

There are many forms of quality partnering and strategic alliance process models.
Internal partnering - that is creating an environment and establish mechanisms within it
that bring managers and employees, teams, and individual employees together in mutually
supportive alliances that maximize the human resources of an organization. Internal
partnering can include management – to – employee partnerships, team to team
partnerships and employee to employee partnerships. Partnering with suppliers - goal is to
create and maintain loyal and reliable relationship which allows both partners to win while
promoting CI. Partnering with customers- is to get them involved early in the product
development cycle. Introduce them to preview design and prototype models. Partnering
with potential competitors – The rationale for partnering with potential competitors. This
applies to small to medium firms and sometimes in large organizations. Global Partnering
– Companies market to customers worldwide to begin supply chain. Education and
Business partnerships- are formed to help organizations to improve their people and how
well they interact with process technologies. Service includes customer training,
workshops, seminars and more. There are supplier agreement forms in which suppliers
and the company signs to ensure there is no confusion later. It’s a `supplier agreement
form to ensure that the products meet up to specification, supplier quality management
system survey, and company supplier quality manual.

For example, the partnership between Spotify and Uber. The strategic alliance between
the two organizations allows Uber users to connect to Spotify and stream their favorite
music while on a ride. I believe it is important to ensure there is a supportive team when
working internally as it can lead to a resignation of an employee. On the other side, it is
much easier to work internally as employees tend to work with each other daily. Partnering
with competitors is rough because they are trying sell more products and improve their
process. Some competitors are more successful or sometimes less. It’s always important to
be careful of how to communicate with people.

Figure 3: The image below shows the different forms of quality partnering whether it is
internal or external. This image is created by Hina Desai.

4. Explain the difference between traditional and modern quality cultures. How did
quality control and quality management work / or not in the past and what is the
new thinking? Design a simple quality-focused example, that you have created.
Don't forget to include a technical illustration / image, that you have created to
illustrate this challenge / solution (1 point of 10).

Modern quality culture looks outward for customers input while traditional quality
cultures look inwards for inspiration and solutions. There difference between traditional
and modern quality are operating philosophy, objectives, management approach, attitude
toward customers, problem-solving approach, supplier relationships, and performance-
important approach. Traditional quality organization typically adopt short term
objectives. Organization with traditional culture focuses mainly on ROI and short-term
profits which will lead to a negative effect in a long run. Traditional culture organizations
tend to spend time, energy on deflecting or blame than on identifying the root cause of the
problem. Also, organization does not allow employees to share their ideas or thoughts to
improve the quality. Quality culture organization maintains good relationships maintained
between organization and suppliers. Traditional culture organization, performance
improvement is an erratic, reactive undertaking that is typically triggered by problems.

The modern quality culture ensures quality top priority when manufacturing a
product since the product should be able to do it’s intended purpose without failing.
Concepts such as lean manufacturing and six sigma are used in most manufacturing places.
There are new technology and innovation that helps quality control department to
accomplish task efficiently and much faster. Before quality was not important, not every
company even have a quality department. There was no QMS or structure to employees to
ensure products get sold with the highest quality. Not having high quality leads to customer
complaints, rework, waste, loss of money and time. Supplier auditing was not even popular
back then. Now that there is stability, companies want to look at quality for long term.
People writes reviews on the company’s website. Now customers feedback has become
important. New thinking is that quality is top priority. For example, A competitive
environment where employees continually raise their work quality to outperform peers. A
culture of being friendly to customers and fellow employees [relevant to service quality].
My company is doing this by leading by example in order to address quality culture.

Figure 4: The image below shows the steps for good actionable steps of VOC. This will
determine which area needs an improvement. This image is created by Hina Desai

5. What is the new thinking in Quality 4.0 plus systems? List the key quality
dimensions and explain how you can quantify each of them? What are the new big
ideas, methods, tools and technologies in Quality 4.0 plus systems? Design a simple
quality-focused example, that you have created. Don't forget to include a technical
illustration / image, that you have created to illustrate this challenge / solution (1
point of 10).

New thinking in Quality 4.0 plus systems describes the integration of industry 4.0
methods, tools, and technologies such as internet of things, big data analytics and artificial
intelligence. It represents a shift towards a more data-driven and digitized approach to
quality management. Quality 4.0 is an integral part of the much wider industry 4.0
framework. The goal is to create smart factories that are highly connected, automated but
flexible and responsive to changing market conditions. Some key concepts include cyber-
physical systems: this refers to integration of systems to create highly connected and
responsive manufacturing environment. IoT/IIoT: relies heavily on the ability to connect
machine, devices, and equipment to the internet allowing for the real time gathering of
data. Big data and analytics: the vast amounts of data generated by connected machines
and devices in industry 4.0 must be analyzed in real-time to gain insights and make
decisions. Cloud computing: requires ability to store, process, and analyze large amounts of
data, which is done using cloud-based services.

Artificial intelligence and machine learning relies on the ability to analyze large
amounts of data in real-time, which is often done using AI and machine learning
algorithms. Human Machine interaction: systems are designed to work seamlessly with
human operators, allowing for a more efficient and flexible manufacturing environment.
Smart factories: adapt quickly to changing market conditions with zero defect.
Connectivity: relies on the connectivity of systems, devices, and data to gather and analyze
information in real-time. Cybersecurity relies on security of data and systems, which is
essential to protect sensitive data and maintain the integrity of quality management
systems. Interoperability means systems can communicate and exchange data with other
systems, devices, and platforms. Flexibility means that they can be easily adapted to
changing business needs or market conditions. This is a good solution, but will it be able to
replace all manufacturing work? For example, quality 4.0 technology includes 3D printing
which is used in production. My company is doing this by using the latest 3D printers.

Figure 5: I found this image on https://prodemyasia.com/what-is-quality-4-0/. Quality 4.0

uses real-time data from Industry 4.0 technologies. These include connected devices and
drive quality professionals’ continuous improvement initiatives. Most activities focus on
quality control, which contributes to a higher overall cost of quality. Cost of quality is the
additional cost spent to prevent failure.

6. Discuss the importance of quality culture. How is your company doing this? How
can you establish a positive, sustainable quality culture with a professional QMS
system in place? What does / can a QMS do for your company? How do you
reinforce the importance of quality culture in your QMS? Design a simple quality-
focused example, that you have created. Don't forget to include a technical
illustration / image, that you have created to illustrate this challenge / solution (1
point of 10).

To establish a positive, sustainable quality culture with a professional QMS in place

requires a combination of several key elements including leadership, employee engagement,
customer focus, continuous improvement, communication, recognition and rewards,
continuous learning, and QMS system. Quality management system is a professional QMS
that provides a framework for implementing and maintaining a positive, sustainable
quality culture. It helps to establish clear policies and procedures, ensures compliance with
relevant regulations and standards, and provides a means for measuring and evaluating
performance. Reinforcing the importance of quality culture in a QMS involves several key
steps: communicate the importance of quality culture by clearly communicating the
importance of quality culture to all employees and explain how it aligns with the
organization’s goals and objectives. Make it part of the performance evaluation:
Incorporate the quality culture as part of the performance evaluation process, this will
ensure that employees understand the importance of quality culture in their daily work
and that they are held accountable for their role in maintaining it. Communicate and
recognize the successes: Share the successes and improvements of the quality culture with
all employees and recognize the contributions of those who have helped to improve it.

Quality culture involves building a culture of trust, participation, and communication

where quality goals are supported by employee participation. The goal is to sustainably
produce and improve quality by implementing perspectives from management that
integrate various cultural aspects of the workforce. The importance of having a quality
culture is not just limited to delivering quality products to the market, but it forms a basis
to lead an organization towards operational excellence and continuous improvement. My
company is doing this by ensuring that all the employees have quality values. The quality
culture of the organization has a clear and direct impact on the ultimate quality of the
product. For example, certain methods can be placed in order to promote quality culture
such as establishing a system, encourage collaboration, and strive for continual
development.

Figure 6: I found this image on https://www.researchgate.net/figure/A-model-of-Quality-

Culture-based-on-common-values_fig1_321532149. It’s a model on quality culture based
common values.

7. How do you understand who is a customer? Explain customer defined value, value

analysis and retention. Design a simple quality-focused example, that you have
 created. Don't forget to include a technical illustration / image, that you have
created to illustrate this challenge / solution (1 point of 10).

Customer value consist of what attributes customer values the most. This is determined
by using different type of surveying method such as written survey, a telephone survey, one
on one interviews. The list of attributes can be rated by ranking which one is priority.
Repeat this process as customers tend to change preferences. The value of product or
service is the sum of a customer’s perceptions by the following factors: product or service
quality, service provided by the organization, the organization’s personnel, the
organization’s image, and selling and cost of product or service. Customer retention
organization has with a customer and continues through lifetime of a relationship. A
company’s ability to attract and retain new customers. Customers are the individuals and
businesses that purchase goods and services from another business. To understand how to
better meet the needs of its customers, some businesses closely monitor their customer
relationships to identify ways to improve service and products. To determine who is your
customer it is important to understand what problem you are trying to resolve. For
instance, if you are looking to create a smart chair, you need to determine who uses chairs
the most such as gamers, office people, etc. This will help you determine who is your
customer and which type of people are you targeting. Those gamer and office people might
have high chance of prolong back disorder from sitting too long in an upright position.

For example, price, quality, and what the product or service can do for that particular
person. The importance of creating customer value increases customer satisfaction and the
customer experience. This can be validated and confirmed by identifying customer values
and then ensuring the products they received met their expectations. It is important to
understand how your product is going to impact people. Customer value is best defined
as how much a product or service is worth to a customer. It's a measure of all the costs and
benefits associated with a product or service. It is worth to a customer when the product is
useful that when the customer values it.
Figure 7: The figure above shows how to understand the customer. Once a customer is
understood then the manufacturing processes can be altered in order to meet customer
expectations. This image is created by Hina Desai.

8. Discuss employee empowerment. How is your company doing this? Design a simple
quality-focused example, that you have created. Don't forget to include a technical
illustration / image, that you have created to illustrate this challenge / solution (1
point of 10).

A positive, sustainable quality culture involves the active participation of all employees.
Employees should be empowered to take ownership of their work and to continuously look
for ways to improve quality. Encourage employee engagement: Encourage employee
engagement in quality management by involving them in the process, providing them with
the necessary training and resources, and empowering them to take ownership of their
work. Employee empowerment is defined as the ways in which organizations provide their
employees with a certain degree of autonomy and control in their day-to-day activities. A
key principle of employee empowerment is providing employees the means for making
important decisions and helping ensure those decisions are correct. When deployed
properly, this should result in heightened productivity and a better quality of employee
work and work life. Employee empowerment is often viewed as an inverted triangle of
organizational power. Allowing employees to have more control over their work is the best
way to optimise their performance and benefit the organisation.

In the traditional view, management is at the top while customers are on the bottom; in
an empowered environment, customers are at the top while management is in a support
role at the bottom. The three main objectives of employee empowerment are self-
empowerment through individual action, mutual empowerment that is interpersonal, and
social empowerment in the outcomes of social action. There are different types of employee
empowerment such as decision-making empowerment, financial empowerment, time
management empowerment, and shared information empowerment. Empowering
employees affects them by setting expectation and goals that can enable success, earn trust
by delegation, give autonomy, provide resources and organizational support, be open to
new and creative perspectives, empower but do not ignore, and acknowledge good work.
For example, giving employees a voice in important decisions that could affect them. This
can be validated and confirmed by evaluating employee survey.

Figure 8: This is a image I found on https://www.aihr.com/blog/employee-empowerment-

examples/. This image shows how to enable employee empowerment. One important
benefit of employee empowerment is an increase in engagement.

9. Discuss leadership for quality. How is your company doing this? Design a simple
quality-focused example, that you have created. Don't forget to include a technical
illustration / image, that you have created to illustrate this challenge / solution (1
point of 10).

Strong leadership is essential for establishing a positive, sustainable quality culture.

Leaders need to set the tone and direction for the organization, communicate the
importance of quality to all employees, and actively promote a culture of continuous
improvement. Lead by example: Leadership must actively demonstrate the importance of
quality culture by taking ownership of quality, being involved in the quality management
process, and recognizing and rewarding quality performance. The Quality leader recognizes that
the people in the company who actually add value for the customer are the operators. Quality is a
transformative process, one that takes a business and changes it to meet a goal or objective. A
good leader is able to bring out the best abilities in his/her team members and motivate them to
work together in achieving a shared goal. A good leader is also organized and keeps the team on
track and focused to avoid delays. You can practice good leadership skills in any role, at any
level. For example, showing up on time to meetings and meeting deadlines show dependability.
 It is important to understand your team and not to overload them with work. The role of
leadership in quality management forms the backbone of any improvement strategy. Leaders
provide a unity of purpose, while also establishing the direction of the organization. As such, the
responsibility of leaders consists of creating and maintaining the internal environment. In this
environment, employees can become completely involved in achieving the organization’s goals
and aims. There are ways to improve quality management leadership and management. Be
proactive and lead through example. Understand and react to fluctuations in the external
environment. Consider the wants of all stake holders. Establish a clear view of the organization’s
prospects. Establish common values and ethical role models throughout the organization.
Develop trust and eradicate fear. Equip employees with the needed resources and freedom to
strive for duty and accountability. Inspire, motivate, and recognize contributions. Foster open
and honest communication. Teach, train, and coach employees. Develop challenging objectives
and targets.

Figure 9: I found this image on https://bohatala.com/leadership-qualities-in-business-

management/. Leaders are the role models for the employees or workers of any organization.
This image shows the leadership qualities.

10. How to lead for a better quality change? How is your company doing this? Design a
simple quality-focused example, that you have created. Don't forget to include a technical
illustration / image, that you have created to illustrate this challenge / solution (1 point of
10).

Measure and report on quality culture: Regularly measure and report on the
performance of the quality culture and use the data to identify areas for improvement and
to recognize and reward success. Continuously improve: Continuously improve the quality
culture by identifying areas for improvement, implementing changes, and measuring the
impact of these changes. The following change implementation model is designed to help
leaders systematically overcome the various factors that inhibit organizational change:
Develop a compelling changed picture, monitor and adjust, Implement the change.
Communicate the change picture to all stakeholders, conduct a comprehensive roadblock
analysis, Remove, or mitigate all roadblocks identified. Leading people in organizations
through change initiatives require a concerted and systematic effort. The following change-
implementation model is designed to help leaders systematically overcome the various
factors that inhibit organizational change: Develop a compelling change picture.
Communicate the change picture to all stakeholders. Conduct a comprehensive roadblock
analysis. Remove or mitigate all roadblocks identified. Implement the change and monitor
and adjust. Certain skills are required in order to lead for quality change. The current
process would need to be compared to future state.

My company is leading for a better-quality change by continuous improvement. Yearly,

using quality projects such as value steam mapping. I believe this is a good method as there
are always room for improvement. For example, implementing a quality management
system would better quality change. Also, encouraging quality culture at workplace would
make quality better. Employees would start thinking quality first. It is always good to lead
by example so that employees are able to visualize it. The importance of better-quality
change is to improve customer satisfaction, improving team work in order to achieve same
goal, increases sales, and improves process and products. Better quality change eliminates
defects and waste. This can be validated by comparing the difference of VOC before and

after the quality change.

Figure 10: The image above shows quality improvement methods. Kaizen is a Japanese
term meaning change for the better or continuous improvement. Lean is a methodology
that focuses on minimizing waste within manufacturing systems while simultaneously
maximizing productivity. Value stream mapping is a Lean manufacturing tool that helps
organizations identify and eliminate waste in their processes and improve operational
efficiency. This is created by Hina Desai.

Executive Summary

Ford Mustang Ford Mustang Mach-E to gain LFP battery to slash costs

https://www.autocar.co.uk/car-news/new-cars/ford-mustang-mach-e-gain-lfp-battery-slash-
costs?utm_source=sfmc&utm_term=Ford+Mustang+Mach-
E+to+gain+LFP+battery+in+Europe+to+slash+costs%e2%80%8b%e2%80%8b
%e2%80%8b%e2%80%8b%e2%80%8b%e2%80%8b%e2%80%8b%26nbsp
%3b&utm_content=14517&utm_id=14fec131-a148-40e6-8931-
bf1e80081509&sfmc_id=56860908&sfmc_activityid=daa154a1-7ba2-4df6-914d-
a704343235f2&utm_medium=email&utm_campaign=ac_newsletter_16_02_2023

According to Fords, models with lithium- iron- phosphate battery (LEP) will be more durable,
charge faster and be cheaper. The model is called Ford mustang Mach-E electric crossover which
will be launch in Europe making it more affordable and accessible to customers. This electric
vehicle features nickel-cobalt-manganese battery set-up, the models equipped with LFP battery
which will last longer, benefit from lower costs and charge faster. These batteries will feature
Ford F-150 lightening pick-up next year before moving on to power a host of next generation
electric passenger and commercial vehicles. LFP batteries are durable then NCM counterparts
and will use fewer in demand expensive material such as nickel and cobalt.

Srikar:
“According to Ford, an optional LFP (lithium iron phosphate) battery pack will be added to the
Mustang Mach-E electric car in 2022, which is anticipated to drastically lower production
costs.”

Hina:
“Compared to the NCM (nickel, cobalt, manganese) batteries now employed in the Mustang
Mach-E, LFP batteries are less expensive to manufacture. The LFP battery is also anticipated to
last longer and be more heat-resistant.”

Srikar:
“While having a somewhat less range than the NCM battery pack, the new LFP battery pack will
still have a range of about 200 miles on a single charge. The LFP battery will be an optional
component for the Mustang Mach-E cars with rear-wheel drive.”

Hina:
“Ford wants to make the Mustang Mach-E more accessible to a wider group of buyers by
providing a more economical battery alternative. Since its release, the Mustang Mach-E has
been highly welcomed, and the addition of a less expensive battery option should help to
increase sales even more.”

The Unsung Success Story Of Increased Efficiency (And Why We All Need More Of It)

https://cleantechnica.com/2023/01/22/the-unsung-success-story-of-increased-efficiency-and-
why-we-all-need-more-of-it/

Organizations charted a path to decarbonize world and broke down the required action in four
different pathways. Referring to the first two pathways include decarbonizing electricity and
electrifying everything. The third pathway is increasing efficiency and the fourth one is
sequestering emissions. Efficiency means using less of a resource to achieve the same result.
Over a 25-year period from 1980 to 2014, efficiency investments resulted in a 50% improvement
in US energy intensity. According to American council for an energy-efficient economy, energy
intensity has decreased by 50% since 1980. fridges use 75% less energy now than they did a
couple decades ago and they perform better and cost less. Light bulbs have followed the same
trend, accounting for 10% of an average home’s electricity consumption in 2015 and only 4% in
2021, thanks to LEDs. Denmark uses about 40 percent of the energy that the U.S. uses and yet
it’s recognized for the second highest quality of life in the world. In order to be efficient, we
would need to improve on technologies and behavior or life style. Strategies include installing
low-flow shower heads and faucet aerators to reduce both water and the energy used to heat the
water.

Hina:
“Efficiency improvement is an achievement that frequently goes unnoticed. When we discuss
success, we frequently highlight significant achievements like shattering sales records or
exceeding growth objectives. Yet, over time, even modest advancements might result in huge
profits.”

Srikar:
“Efficiency is all about carrying out tasks more effectively, quickly, and waste-free. As we
increase our productivity, we may achieve more with less resources or the same amount with
more. This is crucial in the fast-paced, competitive world of today, when businesses are
constantly seeking for methods to accomplish more with less resources.”

Hina:
“Efficiency gains provide several advantages for both people and businesses. For people, it may
mean completing more tasks in less time, feeling less stressed, and having a better work-life
balance. It may include lower expenses, more production, and higher customer satisfaction for
enterprises.”

Srikar:
“The advent of automation in numerous sectors is one illustration of increasing productivity.
Automation may help businesses speed up, eliminate mistakes, and simplify their operations.
Automated customer care chatbots, for instance, may react to client questions rapidly, freeing up
human customer service professionals to address more complicated situations.”

Hina:
“The implementation of lean manufacturing concepts is another such. Manufacturers can make
items more quickly and more cheaply by getting rid of waste and improving procedures. This
may result in more profits and a competitive edge in the market.”

Srikar:
“Using technology can also increase efficiency. For instance, cloud computing enables
businesses to store and access data from any location, eliminating the need for physical servers
and enhancing teamwork. Employees may work more successfully and efficiently by using
mobile devices and remote work solutions.”

Hina:
“In conclusion, improved productivity is a triumph that merits recognition. Although it might not
garner as much attention as large achievements, it can have a tremendous positive impact on
both people and businesses. We can all work more effectively and use our resources more wisely
if we always strive to be more efficient.”

The Economic Impact Of EVs On Households — Not All Are Equal

https://cleantechnica.com/2023/01/22/the-economic-impact-of-evs-on-households-not-all-are-
equal/

Mapping electric vehicle impacts greenhouse gas emissions, fuel costs, and energy justice in the
United States. Household in the lowest income quintile spent the least on transportation but faced
a larger transportation cost burden. The cost of EV has exceeded the average cost of an internal
combustion engine vehicle, the cost of ownership over the life of an EV is less. Half of the
lowest income US households will experience high transportation energy burdens. These are
households that spend more than 4% of household income on filling the tank or charging up. Is
this a bigger issue of energy justice? More equitable transportation includes targeting policies to
promote energy justice in lower income communities, including subsidizing charging
infrastructure. Also, ways to reduce electricity costs and tapping into low- carbon transport
infrastructure.

Srikar:
“Electric vehicles (EVs) have a variety of economic effects on households, depending on a
number of variables like income, geography, and lifestyle. The initial expenses of buying an EV
can be greater, making them less affordable for lower-income households even if they can
provide considerable long-term cost savings over conventional gasoline-powered vehicles.”

Hina:
“These are some significant ways that EVs may affect household finances:
Purchase Cost: Due to the high cost of battery technology, EVs are often more expensive to buy
upfront than conventional gas-powered automobiles. Nevertheless, this is partially countered by
the fact that EVs require less frequent maintenance and use a lot less gasoline.”

Srikar:
“Tax credits: Both federal and state tax credits may lower the price of an EV. But, depending on
where you reside and your income level, these credits are available in different amounts.”

Hina:
“Charging Infrastructure: Installing a home charging station might be expensive, especially for
people who live in flats or houses without garages, but it can make EV ownership more
convenient. Several governments provide financial aid to offset the expense of setting up a home
charging station.”

Srikar:
“Electricity Rates: Depending on where you reside and when you charge, the cost of charging an
EV varies. For EV users who charge during off-peak hours, certain power companies offer lower
prices.”
Hina:
“Resale Value: Compared to gas-powered vehicles, EVs often have a better resale value, which
can help offset the higher initial expenditures. This is in part because EVs have fewer
mechanical parts that might eventually wear out.”

Srikar:
“In general, the financial impact of EVs on families will be influenced by a number of variables,
such as the price of power, the accessibility of charging infrastructure, and the quantity of tax
benefits offered. While buying an EV may initially cost more for certain households, the long-
term savings on fuel and maintenance expenses may make them a more cost-effective decision.”