Clothes Washer 

Manufacturing Costs 

Data Gathering, Reporting and 

Statistical Treatment 

Clothes Washer 

Workshop 

March 11-12, 1998 

EE 

U.S. Department of Energy 

Office of Energy Efficiency 

and Renewable Energy 

1000 Independence Avenue, SW 

Washington, DC 20585 
,,.,., 

Clothes Washer Workshop: AHAM Data Collection 

Introduction 

Data collection methodology 

Illustrative manufacturing cost submittals 

UncertaintyNariability 

Industry cost distribution 

Cost-efficiency graph 

Appendix: AHAM Data Submittal 

2 
Clothes Washer Workshop: AHAM Data Collection 

Data Collection Methodology 

--~-· j j 

L .. J 

Baseline MEF value (MEF = 0.817) was established. 

DOE provided AHAM with more specific definitions of the cost 

categories outlined in the survey instrument. 

Data was submitted to AHAM by the manufacturers 

- Manufacturers provided a range of costs associated with 

achieving each efficiency level. Ranges were provided 

separately for variable and fixed costs. 

- Ranges are described by triangular distributions with minimum, 

most likely and maximum values. 

AOL developed a spreadsheet to aggregate manufacturers' cost 

distributions at each efficiency level. 

- Shipm~nt-based weights were assigned to each distribution. 

3 
Clothes Washer Workshop: AHAM Data Collection 

Illustrative Cost Distributions for Incremental Manufacturing Costs as 

provided by different manufacturers 

Incremental manufacturing costs for Efficiency level "X" 

Manufacturer A j 6 

0 1 2 3 4 5 6 7 8 

lncrem en ta I Cost($) 

Manufacturer B j 

0 1 2 3 

.~ 4 5 6 7 8 

Inc rem en ta I Cost($) 

Manufacturer C 

I I 

0 1 2 3 4 5 6 7 8 

Inc rem en ta I Cost($) 

4 
Clothes Washer Workshop: AHAM Data Reporting 

Characterizing Uncertainty and Variability in Manufacturing Costs 

,~, \ \ ;~ .. _.) 

,~-·--·· j ! 

L_ ___ .J 

Samples were drawn from manufacturer distributions to create an 

industry distribution at each efficiency level. 

Results are reported as distributions over entire range of costs and 

for all efficiency levels. 

Incremental costs are reported for different percentile levels (0°/o, 

10°/o, 25°/o, 50°/o, 75°/o, 90o/o, 100°/o). 

A shipment weighted average of most likely costs was also reported 

as a point value of incremental cost. 

5 
Clothes Washer Workshop: AHAM Data Reporting 

Incremental Manufacturing Costs represented using Probability 

Distribution 

Efficiency 

LevelX 

>a 

.:!:::: 

·--.c 

ca 

.c 

0 

D.. -

Cl) 

> 

:,;::: 

ca 

-Cl) 

a: 

0 1 

I 

~I 0 

e.1 

1.00 

Manufacturer A 

Manufacturer B 

I ' ~ 4 5 6 I ., 

I ~ 1 Incremental Cost ($) : I 

_1_1 I -1 

~I ~I -

~I -~I -

~I ~I ~I ~I ~I !el ~I ~I - - - - - -1 I I I I I 

Total Rel. 

Probability 

= 1.0 

2.75 4.50 6.24 8.00 

Incremental Cost ($) 

6 
Clothes Washer Workshop: AHAM Data Reporting 

A cost-efficiency graph was developed using the industry cost 

distribution (represented as percentile values) for each efficiency level 

Manufacturer A 

0 1 2 3 4 5 6 7 8 

Incremental Cost ($) 

Cost-Efficiency Graph 

Iner. Manufacturing - • 100% 

Percentile (I) 

Cost -

-

0 

0 

CJ • 

0% $ cu -

c • 

10% $ Cl.I 

E • 

! • 

u • .E • 0% 

90% $ LevelX 

100% $ Efficiency (MEF} 

7 
Clothes Washer Workshop: AHAM Data Reporting 

AHAM data submittal was used to develop a cost-efficiency graph 

8 
Clothes Washer Workshop: AHAM Data Reporting 

Shipment weighted average of the most likely values and the 50th 

percentile value are different concepts 

Efficiency 

Level1 

0 

Manufacturer Manufacturer Manufacturer Manufacturer 

A B C D 

1 2 3 4 5 6 7 8 9 10 

Incremental Cost($) 

Manuf- Mkt. Cost Most SWAof SOth 

acturer Share Range Likely Most likely Percentile 

A 25% $0-2 $1 

B 25% $2-4 $3 

c 25% $6-8 $7 $5.0 $4.0 

D 25% $8-10 $9 

The shipment weighted average of most likely is the only single data point 

that always incorporates data from all manufacturers. 

9 
Clothes Washer Workshop: Appendix . 

Appendix: AHAM Data Submittal 

10 
AHAM Data Submittal-Product characteristics and energy use data 

Appliance Type: Clothes Washer 

Appliance Class (anticipated): Standard (1.6 cu. ft.or greater capacity) 

Yearly Production Volume (a)= 7,065,761 units 

Product Characterisics Energy Use (c) Water Use (c) 

Percent MEF Total Energy Clothes Hot Machine Dryer Water 

Improvement w/ dryer Container (c) Water (d) Energy (e) Energy Use 

(b) cu. ft./kWh/cycle kWh/cycle cu.ft. kWh/cycle kWh/cycle kWh/cycle gal.lcyc 

(!] [2] [3] [4] [5] [6] [7] [8] 

Baseline 0.817 3.227 2.847 1.587 0.209 1.43 39.181 

5 0.860 3.165 2.817 1.543 0.209 1.413 38.613 

10 0.908 3.017 2.822 1.408 0.209 1.4 38.613 

15 0.961 2.833 2.832 1.216 0.209 1.407 38.621 

20 1.021 2.739 2.893 1.113 0.218 1.408 38.446 

25 1.089 2.292 2.866 0.715 0.304 1.273 26.6 

35 1.257 1.866 2.749 0.462 0.133 1.27 21.03 

40 1.362 1.859 2.749 0.462 0.133 1.263 21.03 

45 1.485 .1.651 2.736 0.429 0.114 1.107 23.405 

50 1.634 1.574 2.736 0.413 0.114 1.047 23.405 

(a) Total shipments of clothes washers made during 1996 for the U.S. domestic market. 

[2] Refer to Section 4.4, MEF, DOE Test Procedures 1

• Baseline MEF value provided by AHAM 

New MEF =Baseline MEF I {1 - (percent improvement/100)} 

(3] Sum of ETE and DE; where ETE is from Section 4.1.7 and DE is from Section 4.3 of DOE Test 

Procedures. 1 

[4] Refer to Section 3.1, C, DOE Test Procedures.1 

[5] Refer to Section 4.1.3, HET, DOE Test Procedures. 1 Includes only externally applied hot water. 

[6] Refer to Section 4.1.6, MET, DOE Test Procedures. 1 Includes internal hot water. 

[7] Refer to Section 4.3, DE, DOE Test Procedures. 1 

[8] Refer to Section 4.2.2, QT, DOE Test Procedures. 1 

(9] Refer to Section 4.2.3, WCF, DOE Test Procedures. 1 

1 Clothes Washer Test Procedure titled "Uniform Test Method for Measuring the Energy 

Consumption of Automatic and Semi-Automatic Clothes Washers." All are part of Appendix J1 

to Subpart B of Part 430. 

Water 

Use 

gal.I cu.ft. 

[9] 

13.779 

13.732 

13.71 

13.67 

13.342 

9.22 

7.661 

7.661 

8.57 

8.57 

.. 
AHAM Data Submittal-Shipment weighted average of most likely values 

Appliance Type: Clothes Washer 

Appliance Class (anticipated): Standard (1.6 cu. ft.or greater capacity) 

Data Characteristic: Shipment Weighted Average of Most Likely 

Yearly Production Volume (a)= 7,065,761 units 

Product Characterisics Variable Costs Total Total Incremen. No. of 

Percent MEF Cost Per Unit (a) Variable Fixed Mfg. Cost Respondents 

Improvement Materials Labor Overhead Costs (j) Costs (o) (p) 

(b) cu. ft.lkWh/cycle (g) (h) (i) ($per Unit) ($per Unit) ($per Unit) ($per Unit) 

[I] [2] [12] [13] [14] [15] [22] [23] 

Baseline 0.817 

5 0.860 $0.01 $0.01 $0.00 $0.02 $0.07 $0.09 

10 0.908 $0.25 $0.04 $0.01 $0.30 $0.61 $0.91 

15 0.961 $3.18 $0.10 $0.04 $3.32 $1.01 $4.33 

20 1.021 $10.71 ($0.02) ($1.80) $8.89 $6.21 $15.10 

25 1.089 $36.14 $8.61 $0.09 $44.84 $19.29 $64.13 

35 1.257 $86.73 $10.94 $7.78 $105.45 $22.72 $128.17 

40 1.362 $87.15 $10.94 $7.78 $105.87 $22.72 $128.59 

45 1.485 $125.58 $15.52 $14.51 $155.61 $24.67 $180.28 

50 1.634 $132.40 $15.68 $14.51 $162.59 $24.67 $187.26 

[12] Material costs are those costs associated with the purchase of all materials required in the manufacturer's 

production process. Accordingly, material costs include not only the cost of the material in the finished 

component, but also that of the material scrapped (because of material removed or scrapped components) 

minus salvage price. Estimates of direct material costs account for all raw materials and purchased finished 

supplier parts that are directly assignable to the end product. 

[13] Labor costs include all direct costs that are physically traceable to the end product, plus any overtime 

premium. Labor costs are determined as an average wage rate, depending on worker classification, 

. required to perform the tasks resulting in the end product. Total labor cost per unit is a summation of 

costs taken over all tasks or operations required in the production process. 

[14] Overhead includes factory overhead excluding depreciation. Includes both direct and indirect components. 

Direct overhead costs are the estimated overhead charges that attempt to account for all other expenses that 

are due to the production process, vary directly with the production volume, and contribute to the cost of sales. 

Examples of such expenses include, but are not limited to, expendable tools, material handling support, fuel 

and power requirements, set up costs, freight in and out, costs of direct supervision, and clerical costs. 

(The estimated total of all expenses that vary with the production quantity is based on the volume of common 

or near common components to be produced. The sum of these expenses is then apportioned to each 

component on some logical scheme.) 

Indirect overhead are comprised of, but not limited to, property taxes, insurance costs, etc. 

[15] Total of columns numbered [12] through [14]. 

[22) This is the sum of investments for tooling costs, investment, R&D and marketing. 

- Tooling cost is the total cost of special tooling to manufacture a component over the entire life production 

volume of that component. Tooling costs will be amortized over a period of 5 years. 

- Investment costs are those costs associated with the purchase of property, plant and equipment required 

for the manufacturer's production process. Investment costs will be amortized over a period of 5 years. 

- R&D costs are costs incurred for the purpose of designing and developing new and improved products, 

or processes. R&D costs will be treated as an expense. 

5 

5 

5 

5 

5 

s 

s 

4 

4 

- Marketing costs are the expensable costs for new product advertisements, literature and catalogs, and various 

related marketing expenses. Marketing costs include market research, advertising, point-of-sale promotions, 

and salespersons' compensations and travel costs. Marketing costs will be treated as an expense. 

[23) Per unit costs (fixed) are obtained by dividing the total investment (as provided by the manufacturers) by the 

number of clothes washers produced by those manufacturers. 
AHAM Data Submittal-Cost distribution represented as Percentiles 

Appliance Type: Clothes Washer 

Appliance Class (anticipated): Standard (1.6 cu. ft.or greater capacity) 

Data Characteristic: Percentiles 

Yearly Production Volume (a)= 7,065,761 units 

Product Characterisics Total Total IncrementaJ 

Percent Percentile MEF Variable Fixed Manufacturing 

Improvement Costs(j) Costs(q) Costs 

(b) cu. ftAWhlcycl~ ($per Unit) ($per Unit) ($ pcrUnil) 

Baseline 0.817 

5 100 (Max.l 0.860 $0.24 $0.87 $1.11 

90 $0.01 $0.18 $0.18 

75 $0.01 $0.01 $0.02 

50 $0.01 $0.01 $0.02 

25 $0.01 $0.01 $0.02 

IO $0.01 $0.01 $0.02 

0 $0.00 $0.00 $0.00 

10 100 (Max.l 0.908 $6.75 $I0.84 $12.84 

90 $1.26 $1.09 $2.71 

75 $0.49 $0.30 $0.96 

50 $0.01 $0.06 $0.07 

25 $0.01 $0.05 $0.06 

IO $0.01 $0.01 $0.02 

0 $0.00 $0.00 $0.00 

15 100 (Max.) 0.961 $40.00 $I0.84 $46.19 

90 $3.96 $4.36 $14.08 

75 $0.76 $0.30 $0.97 

50 $0.65 $0.15 $0.80 

25 $0.58 $0.12 $0.72 

IO $0.01 $0.01 $0.02 

0 $0.00 $0.00 $0.00 

20 100 IMax.l 1.021 $70.00 $20.60 $79.45 

90 $27.78 $15.63 $38.48 

75 $14.13 $11.75 $27.74 

50 $0.72 $0.33 $1.06 

25 $0.65 $0.26 $0.95 

IO ($0.53) $0.24 $0.90 

0 ($12.20) . $0.21 $0.80 

25 100 (Max.) 1.089 $83.28 $27.63 $I02.63 

90 $70.40 $25.36 $93.97 

75 $67.24 $24.04 $90.85 

50 $63.46 $22.14 $86.26 

25 $15.11 $14.39 $29.37 

IO ($0.30) $14.07 $16.13 

0 ($12.20) $4.85 $1.28 

35 100 (Max.) 1.257 $280.00 $IOl.60 $381.60 

90 $228.80 $25.28 $254.01 

75 $118.63 $23.29 $143.34 

50 $69.06 $21.41 $90.56 

25 $63.59 $19.44 $85.30 

IO $60.38 $17.20 $81.74 

0 $52.03 $15.06 $67.43 

40 IOOIMax.l 1.362 $290.00 $101.60 $391.60 

90 $229.28 $25.28 $254.44 

75 $117.17 $23.30 $143.57 

50 $69.05 $21.41 $90.54 

25 $63.73 $19.44 $85.28 

IO $60.44 $17.15 $81.74 

0 $52.03 $15.06 $67.43 

45 100 IMax.l 1.485 $300.00 $IOl.60 $401.60 

90 $239.76 $28.23 $266.26 

75 $227.29 $23.70 $251.73 

50 $128.38 $19.89 $153.71 

25 $79.38 $18.02 $97.37 

10 $69.25 $16.95 $87.36 

0 $52.30 $15.06 $68.26 

50 IOO(Max.) 1.634 $300.00 $IOl.60 $401.60 

90 $239.46 $28.29 $266.11 

75 $227.31 $23.76 $251.70 

50 $132.89 $19.89 $157.87 

25 $95.45 $18.00 $113.81 

IO $84.95 $16.94 $102.98 

0 $66.16 $15.06 $82.12