# Light

- Duty Vehicle Technology Cost Analysis, Advanced 8

- Speed Transmissions

### NOTICE This technical report does not necessarily represent final EPA decisions or positions. It is intended to present technical analysis of issues using data that are currently available. The purpose in the release of such reports is to facilitate the exchange of technical information and to inform the public of technical developments. 

### Assessment and Standards Division Office of Transportation and Air Quality U.S. Environmental Protection Agency Prepared for EPA by FEV, Inc. EPA Contract No. EP-C-07-069

Work Assignment No. 3-3 

# Light

- Duty Vehicle Technology Cost Analysis, Advanced 8

- Speed Transmissions

E PA-420-R-11-022 October 2011Report FEV 07-069-303 October 3, 2011 

### CONTENTS Section Page Executive Summary ............................................................................................................. ........ 1-1 1 Introduction ................................................................................................................ ........ 1-2 1.1 Objectives ................................................................................................................ . 1-2 1.2 Study Methodology .................................................................................................. 1-2 1.3 Manufacturing Assumptions ..................................................................................... 1-5 1.4 Subsystem Categorization ........................................................................................ 1-8 2 Case Study Results .......................................................................................................... ... 2-9 2.1 Case Study #1005 Results ...................................................................................... 2-10 2.1.1 6-Speed AT Hardware Overview – Baseline Technology Configuration .......................................................................................................... 2-10 2.1.2 8-Speed AT Hardware Overview – New Technology Configuration .......................................................................................................... 2-11 2.1.3 Net Incremental Direct Manufacturing Cost Impact (AT Analysis) 2-12 2.2 Case Study #1202 Results ...................................................................................... 2-15 2.2.1 6-Speed DCT Hardware Overview – Baseline Technology Configuration .......................................................................................................... 2-15 2.2.2 8-Speed DCT Hardware Overview – Baseline Technology Configuration .......................................................................................................... 2-16 2.2.3 Net Incremental Direct Manufacturing Cost Impact (DCT Analysis). ................................................................................................................ 2-1 9 3 Glossary of Terms ........................................................................................................... . 3-21



## iReport FEV 07-069-303 October 3, 2011 

### LIST OF FIGURES Number Page Figure 1-1: Cost Analysis Process Flow Steps and Document Interaction ................................. 1-4 Figure 2-1: Illustration of ZF 6HP28 RWD Transmission ........................................................ 2-10 Figure 2-2: Illustration of ZF 8HP70 RWD Transmission ........................................................ 2-11 Figure 2-3: ZF Automatic Transmission Weight and Torque Comparison Data ...................... 2-11 Figure 2-4: Illustration of the Volkswag en DQ250 Wet Dual Clutch Transmission ................ 2-15 Figure 2-5: Cross-sectional illustration of the Volkswagen 6-Speed DCT ............................... 2-16 Figure 2-6: 8-Speed Wet DCT Concept Illustration .................................................................. 2-17



## iiReport FEV 07-069-303 October 3, 2011



## iii LIST OF TABLES Number Page Table ES- 1 New Technology Configurations Incremental Unit Cost Impact ........................... 1-1 Table 1-1: Summary of Universal Cost Analysis Assumptions Applied to All Case Studies ..... 1-6 Table 1-2: Transmission System, Subsystem and Sub-Subsystem Classification ....................... 1-8 Table 2-1: System Cost Model Analysis Templa te Illustrating the Incremental Subsystem Costs Roll Up for an 8-Speed AT compared to a 6-Speed AT ............................................................ 2-14 Table 2-2: System Cost Model Analysis Templa te Illustrating the Incremental Subsystem Costs Roll Up for an 8-Speed DCT compared to a 6-Speed DCT ...................................................... 2-20Report FEV 07-069-303 October 3, 2011 

## Light-Duty Vehicle Technology Cost Analysis, Advanced 8-Speed Transmissions Executive Summary The United States Environmental Protection Agen cy (EPA) contracted with FEV, Inc. to determine the incremental direct manufacturi ng costs for a set of advanced, light-duty vehicle technologies. The technologies select ed are on the leading edge for reducing emissions of greenhouse gases in the future, primarily in the form of tailpipe carbon dioxide (CO 2 

## ). This report, the fourth in a series of reports, addresses the direct incremental manufacturing cost of two (2) new powertrain configurations, relative to two (2) existing baseline configurations, with comparable dr iver performance metr ics. The complete costing methodology used in the analysis of thes e configurations, as well as the pilot case study, is described in “Li ght-Duty Technology Cost Anal ysis Pilot Study (EPA-420-R09-020).” The two (2) new powertrain technology configurations analyzed are:

• A next generation ZF 8-speed automatic tr ansmission, compared to a ZF 6-speed, Lepelletier concept-based, automatic transmission • A 6-speed wet dual clutch transmission (D CT), compared to an 8-speed wet dual clutch transmission (DCT) The results for the two (2) case studi es are shown below in Table ES-1.

Table ES- 1 New Technology Configurations 

## Incremental Unit Cost Impact Case Study Reference Number Technology Definition Vehicle Class Base Technology New Technology Incremental Unit Cost 1005 8-Speed AT replacing a 6-Speed AT Large Truck Passenger or Commercial Vehicle with Strong Towing Capabilities CS# B1005 6-Speed AT CS# N1005 8-Speed AT + $61.84

1202 8-Speed DCT Replacing a 6-Speed DCT Mid to Large Size Car, Passenger 4-6 CS# B1202 6-Speed Wet DCT CS# N1202 8-Speed Wet DCT + $198.14



## 1-1Report FEV 07-069-303 October 3, 2011 

## 1 Introduction 1.1 Objectives 

## The objective of this work assignment was to determine the incremental direct manufacturing costs for two (2) new advanced light-duty vehicle transmission technology configurations using the co sting methodology, databases, and supporting worksheets developed in the previously concluded pilot study (Light-D uty Technology Co st Analysis Pilot Study [EPA-420-R-09-020]).

1.2 Study Methodology 

## The first report published, “Light-Duty Te chnology Cost Analysis Pilot Study (EPA-420- R-09-020),” covers in great detail the overa ll costing methodology used to calculate an incremental cost delta between various te chnology configurations. In summary, the costing methodology is heavily based on tear downs of both new a nd baseline technology configurations having similar driver performan ce metrics. Only components identified as being different, within the selected new and baseline technology c onfigurations, as a result of the new technology adaptation are ev aluated for cost. Component costs are calculated using a ground-up co sting methodology analogous to that employed in the automotive industry. All incremental cost s for the new technology are calculated and presented using transparent cost models c onsisting of eight (8) core cost elements: material, labor, manufacturing overhead/burden, end item scra p, SG&A (selling general and administrative), profit, ED&T (engineering, design, and testing ), and packaging. Information on how additional associated manuf acturing fixed and variable cost elements (e.g., shipping, tooling, OEM i ndirect costs) are accounted for within the cost analysis are also discussed in the initial report (EPA-420-R-09-020). Listed below, with the aid of Figure 1-1 , is a high level summary of the ten (10) major steps taken during the cost analysis process. For additional information concerning the terminology used within the ten (10) steps, please reference the glossary of terms found at the end of this report. Step 1 : Using the Powertrain-Vehicle Class Summary Matrix (P-VCSM) , a technology is selected for cost analysis. Step 2 : Existing vehicle models are identified for teardown to provide the basis for detailed incremental cost calculations. Step 3 : Pre-teardown Comparison Bills of Materials (CBOM) are developed, covering hardware that exists in the new and base technology configurati ons. These high level CBOM’s are informed by the team’s understandi ng of the new and ba se technologies and serve to identify the major systems and components targeted for teardown. 1-2Report FEV 07-069-303 October 3, 2011 

## Step 4 : Phase 1 (high level) teardown is conducte d for all subsystems identified in Step 3 and the assemblies that comprise them. Using Design Profit® software , all high level processes (e.g., assembly process of the hi gh pressure fuel pump onto the cylinder head assembly) are mapped during the disassembly. Step 5 : A cross functional team (CFT) reviews all the data generated from the high level teardown and identifies which components a nd assumptions should be carried forward into the cost analysis. The CBOMs are updated to reflect the CFT input. Step 6 : Phase 2 (component/assembly level) teardowns are initiated, based on the updated CBOM’s. Components and assemblie s are disassembled, and processes and operations are mapped in full detail. Th e process mapping generates key process information for the quote worksheets. Several databases containing critical costing information provide support to the mapping process. Step 7 : Manufacturing Assumption and Quote Summary (MAQS) worksheets are generated for all parts undergoing the cost analysis. The MAQS details all cost elements making up the final unit costs: material, la bor, burden, end item sc rap, SG&A, profit, ED&T, and packaging. Step 8 : Parts with high or unexpected cost results are subjected to a marketplace crosscheck, such as comparison with supplier pr ice quotes or wider consultation with company and industry resources (i.e., s ubject matter experts) beyond the CFT. Step 9 : All costs calculated in the MAQS worksh eets are automatically inputted into the Subsystem Cost Model Analysis Templates (CMAT) . The Subsystem CMAT is used to display and roll up all the differe ntial costs associated with a subsystem. All parts in a subsystem that are identified for costing in the CBOM are entered into the Subsystem CMAT. Also both the base a nd new technology confi gurations are included in the same CMAT to facilitate differential cost analysis. Step 10 : The final step in th e process is creating the System CMAT which rolls up all the subsystem differential costs to establish a final system unit co st. The System CMAT, similar in function to the subsystem CMAT, is the document used to display and roll-up all the subsystem costs associat ed within a system as defi ned by the CBOM. Within the scope of this cost analysis, the System CMAT provides the botto m line incremental unit cost between the base and new tec hnology configurations under evaluation

1-3Report FEV 07-069-303 October 3, 2011



## Figure 1-1: Cost Analysis Process Fl ow Steps and Document Interaction

. 1. Technology Selection Powertrain Vehicle Class Summary Matrix (P-VCSM) 4. System/Subsystem Disassembly and Process Mapping – Phase 1 ( Design Profit®) Databases (Material, Labor, Manufacturing Overhead, Mark-up, & Packaging)

2. Hardware

Selection Powertrain Package Proforma

3A. Generate Bill of Materials – Phase 1

Comparison Bill of Materials (C-BOM) 5. Cross Functional Team (CFT)

Reviews 7. Generate Manufacturing Assumption and Quote Summary (MAQS) Worksheets

9. Subsystem Cost Roll Up Subsystem Cost Model

Analysis Template (Subsystem CMAT)

10. System Cost Roll Up System Cost Model Analysis Template (System CMAT) 6. Component/

Assembly Disassembly & Process Mapping – Phase 2 ( Design Profit®)

3B. Update Bill of Materials – Phase 2

Comparison Bill of Materials (C-BOM) 8. Market Place Cross-check



## Process Flow

Manual & Automated Document Links

1-4Report FEV 07-069-303 October 3, 2011 

### 1.3 Manufacturing Assumptions 

## When conducting the cost analysis for the various technology conf igurations, a number of assumptions are made in orde r to establish a consistent framework for all costing. The assumptions can be broken into univers al and specific case study assumptions. The universal assumptions appl y to all technology configurati ons under analysis. Listed in Table 1-1 are the fundamental assumptions. The specific case study assumptions ar e those unique to a given technology configuration. These include volume assump tions, weekly operation assumptions (days, shifts, hours, etc.), packaging assumptions, and Tier 1 in-house manufacturing versus Tier 2/3 purchase part assumptions. Details on the case study specific assumptions can be found in the individual MAQS worksheets.

1-5Report FEV 07-069-303 October 3, 2011 

## Table 1-1: Summary of Universal Cost An alysis Assumptions Applied to All Case Studies Item Description Universal Case Study Assumptions

1 Incremental Direct Manufacturing Costs A. Incremental Direct manufacturing cost is the incremental difference in cost of components and assembly, to the OEM, between the new technology configuration and the baseline technology configuration. B. This value does not include Indirect OEM costs associated with adopting the new technology confi guration (e.g. tooling, corporate overhead, corporate R&D, etc).

2 Incremental Indirect OEM Costs are not handled within the scope of this cost analysis A. Indirect Costs are handled through the application of "Indirect Cost Multipliers" (ICMs) which are not included as part of this analysis. The ICM covers items such as ..... a. OEM corporate overhead (sales, marketing, warranty, etc) b. OEM engineering, design and testing costs (internal & external) c. OEM owned tooling B. Reference EPA report EPA-420-R-09-003, February 2009, "Automobile Industry Retail Price Equivalent and Indirect Cost Multiplier" for additional details on the develop and application of ICM factors.

3 Product/Technology Maturity Level A. Mature technology assumption, as defined within this analysis, includes the following: a. Well developed product design b. High production volume c. Products in service for several years at high volumes c. Significant market place competition B. Mature Technology assumption establishes a consistent framework for costing. For example, a defined range of acceptable mark-up rates. a. End-item-scrap 0.3-0.7% b. SG&A/Corporate Overhead 6-7% c. Profit 4-8% d. ED&T (Engineering, Design and Testing) 0-6% C. The technology maturity assumption does not include allowances for product learning. Application of a learning curve to the calculated incremental direct manufacturing cost is handled outside the scope of this analysis.



## 1-6Report FEV 07-069-303 October 3, 2011



### Item Description Universal Case Study Assumptions

4 Selected Manufacturing Processes and Operations A. All operations and processes are based on existing standard/mainstream Industrial practices. B. No additional allowance is included in the incremental direct manufacturing cost for manufacturing learning. Application of a learning curve to the developed incremental direct manufacturing cost is handled outside the scope of this analysis. 5 Annual Capacity Planning Volume 450,000 Units 6 Supplier Manufacturing Location North America (USA or Canada) 7 OEM Manufacturing Location North America (USA or Canada)

8 Manufacturing Cost Structure Timeframe ( e.g. Material Costs, Labor Rates, Manufacturing Overhead Rates) 2009/2010 Production Year Rates

9 Packaging Costs A. Calculated on all Tier One (T1) supplier level components. B. For Tier 2/3 (T2/T3) supplier level components, packaging costs are included in T1 mark-up of incoming T2/T3 incoming goods.

10 Shipping and Handling A. T1 supplier shipping costs covered through application of the Indirect Cost Multiplier (ICM) discussed above.B. T2/T3 to T1 supplier shipping costs are accounted for via T1 markup on incoming T2/T3 goods.

11 Intellectual Property (IP) Cost Considerations Where applicable IP costs are included in the analysis. Based on the assumption that the technology has reached maturity, sufficient competition would exist suggesting alternative design paths to achieve similar function and performance metrics would be available minimizing any IP cost penalty.

12 Material Cost Reductions (MCRs) on analyzed hardware Only incorporated on those compon ents where it was evident that the component design and/or selected manufacturing process was chosen due to actual low production volumes (e.g. design choice made to accept high piece price to minimize tooling expense). Under this scenario, assumptions where made, and cost analyzed assuming high production volumes. 13 Operating and End-of Life Costs No new, or modified, maintenance or end-of-life costs, were identified in the analysis.
14 Stranded Capital or ED&T expenses No stranded capital or non-recovered ED&T expenses were considered within the scope of this analysis. It was assumed the integration of new technology would be planned and phased in minimizing non-recoverable expenses. 

## 1-7Report FEV 07-069-303 October 3, 2011 

### 1.4 Subsystem Categorization 

## As with the first case study analysis, a desi gn based classification system was used to group the various components and assemblie s making up the technol ogy configurations. In general, every vehicle system (e.g., engine system, transmission system, etc) is made up of several subsystems levels (e.g., the transmission system includes a case subsystem, geartrain subsystem, internal clutch subsystem, launch clutch s ubsystem, oil pump and filter subsystem, etc.), which, in turn, is ma de up of several sub-s ubsystem levels (e.g., the geartrain subsystem includes the following sub-subsystems: input shaft, output shaft, transfer shaft, planetary gear, etc). The sub- subsystem is the smallest classification level in which all components and assemblies are binned. Table 1-2 provides an overview of the major s ubsystems and sub-s ubsystems included for each system evaluated within this analysis. In Section 2 , Case Study Results , costs are presented for both transmission eval uations using thes e design subsystem categorizations. Table 1-2: Transmission System, Subsystem and Sub-Subsystem Classification Subsystem Sub-Subsystem Externally Mounted Com ponent Lift Eye, Vent Cap, Bracket, Bolting Case(s) Transaxle Case, Transaxle Hous ing, Covers, Bearing Race, Plug, Actuator

Gear Train Input Shaft, Output Shaft, Transfer Shaft, Sun Gear, Planetary Gear, Ring Gear, Counter Gear, Differential Gear, Bearing (Roller, Needle) Internal Clutch Sprag Clutch, Clutch & Brake Hub, Disc and Plate, Piston, Snap Ring, Bearing (Roller, Needle), Synchronizer Launch Clutch Torque Converter, Clutch Assembly, Flexplate, Flywheel Oil Pump and Filter Oil pump, Cover, Oil Filter, Oil Cooler, Oil Squirter, Pipes/Tubes Mechanical Control Valve Body Assembly, Mechanical Controls (e.g., Shift Forks), Sealing Elements, Bear ing Elements, Plugs & Cups Electrical Control Controller, Solenoid, Sensor, Switches, Wiring Harness Park Mechanism Rod/Shaft/Pin, Spring, Pawl, Bracket, Bolt



## 1-8Report FEV 07-069-303 October 3, 2011 

## 2 Case Study Results The incremental direct manufacturing cost im pact for the 6-speed to 8-speed automatic transmission (AT) comparison and the 6-speed to 8-speed wet dual clutch transmission (DCT) are shown above in Within Section 2.0, for each case study, a brie f description of the performance attributes of both the baseline and new t echnology configurations are provided. In addition a high level overview of key hardware content is included for each technology evaluated. In the 6-speed DCT to 8-spee d DCT analysis, no 8-speed DCT hardware was available at the time of the analysis. Using the 6-spee d DCT as the foundation, the FEV team made some basic assumptions on how the 6-speed DCT could be modifi ed to produce an 8- speed variant. The assumptions can be found in the respective section. Following the system performance and hardwa re overviews for each case study, the increment direct manufacturing cost impact is summarized at a subsystem level in a system Cost Model Analysis Template (CMAT). Because each case study consists of a larg e quantity of component and assembly Manufacturing and Assumption Quote Summary (MAQS) worksheets, hard copies were not included as part of this report. However, electronic copies of the MAQS worksheets, as well as all other supporting case study doc uments (e.g., Subsystem CMATs, System CMATs), can be accessed at http://www.epa.gov/otaq/climate/publications.htm

2-9Report FEV 07-069-303 October 3, 2011 

### 2.1 Case Study #1005 Results 

## Case Study #1005 analyzed the direct incremental manufacturing cost for updating from a ZF 6-speed, Lepelletier concept, automatic transmission to a next generation 8-speed automatic transmission. 2.1.1 6-Speed AT Hardware Overview – Baseline Technology Configuration



## Figure 2-1: Illustration of ZF 6HP28 RWD Transmission The 6-speed automatic transmission selected for the baseline analys is was the ZF 6HP28 RWD transmission (second generation of ZF 6HP 26). This transmission is/has been used in various applications in cluding the BMW Series 3 Coupe and the X5 SUV in the 2007- 2012 timeframe. The ZF 6-Speed transmissi on incorporates a Lepelletier AT gearing configuration which utilizes a si ngle planetary gear set along with a Ravigneaux gear set. The use of a Lepelletier configuration allowe d ZF to add an additional gear without sacrificing size, weight and part content over the existing 5-speed AT. In fact the 6-speed AT weighs approximately 12% less, and has 29% fewer parts, than its predecessor. (Source: SAE Technical Paper 2003-01-0596). Li sted below are a few design parameters for the 6-speed AT.

• Total of five (5) shift elements, tw o (2) open shift elements per gear

• Three (3) clutches and two (2) brakes

• Full planetary gear set and a Ravigneaux gear set

• The total weight of the transmission, including Automatic Transmission Fluid (ATF), is approximately 92.5kg. The maximum output torque rating is 650 Nm.

2-10Report FEV 07-069-303 October 3, 2011 

### 2.1.2 8-Speed AT Hardware Overview – New Technology Configuration



## Figure 2-2: Illustration of ZF 8HP70 RWD Transmission The ZF 8-speed automatic transmission (AT ), the successor to the ZF 6-speed AT, was selected for the analysis representing the ne w advance technology conf iguration. The ZF 8-speed RWD transmission (8HP70) (Figure 2-2) was a complete redesign of the existing Lepelletier-based 6-speed transmission family, which origina lly launched in the 2001 timeframe. The implementation of a revol utionary gearing syst em, consisting of 4 planetary gear sets, controlled by an equivalent number of shift elements as compared to the ZF 6-speed AT, supports a net 6% overa ll fuel economy improvement relative to its predecessor. In addition to maintaining the same overall installati on dimensions, the new 8-speed transmission has a higher torque to we ight ratio as shown below in Figure 2-3.

(Source: ZF Published Document “The Freedom to Exceed Limits”, http://www.zf.com/media/media/en/document/cor porate_2/products_3/innovation_1/8hp_1/8HP_de_2007s.pdf) 

## Figure 2-3: ZF Automatic Transmissi on Weight and Torque Comparison Data

2-11Report FEV 07-069-303 October 3, 2011 

## Design parameter s for the 8-speed AT, fo r comparison to the ZF 6-speed AT, are lements per gear. o (2) brakes

mpared to a 6-speed.

red), including ATF, is 89kg. he maximum output torque rating is 700 N*m p resented below.

• Five (5) shift elements, two (2) open shift e

• Three (3) disk clutches and tw

• Four (4) planetary gear sets.

• Lost torque is reduced by 33% co

• Gear set efficiency exceeds 98%

• The total weight of the transmission (as measu T

2.1.3 Net Incremental Direct Manufacturing Cost Impact (AT Analysis) 

## As discussed in the initia l report (EPA-420-R-09-020), the costing methodology employs an exclusion approach to costing. Follo wing completion of the comparison bill of materials (CBOMs), the cross functional te am began the process of analyzing the differences between hardware on the six (6) and eight (8) speed automatic transmissions. A component function and desi gn analysis was performed, eliminating many parts and components from further costing analysis. A baseline cost from wh ich an incremental cost for the 8-speed was established. The majo rity of incremental co st increase of the 8-

ect speed over the 6-speed was associated with the additional gearing. It was obvious from the transmission teardown assessment that in a ddition to ZF’s goal for improving overall performance with th eir new 8-speed automatic transmission relative to the 6-speed predece ssor, ZF also focused on optimizing cost and weight. In regard to the 6-speed automatic transmission, many of innovative ideas implemented into the 8-speed automatic could have been incorpor ated into a new 6-speed if it were to be redesigned. The most obvious new tec hnology advance (NTA) would be adopting a similar drum and carrier system, which w ould conceivably have the same benefits (compact packaging, streamlined and less co stly to assemble) recognized by the 8-speed automatic. As part of this analysis, no a dditional work was conducted to determine what the financial impact would be on the 6-spee d automatic by employing some of these new technology advances and material cost reduc tion concepts. The net incremental dir manufacturing cost shown below is solely ba sed on the physical hardware evaluated.

2-12Report FEV 07-069-303 October 3, 2011 

## Table 2-1 shows the net incremental direct ma nufacturing cost between the 8- and 6- speed automatic transmissions. In eval uating the physical hardware, the 6-speed automatic was analyzed to be less expensive to manufacture by approximately $62. Note that when the 8-speed transmission was redesigned, several other functional and performance updates not driven by the added gear ratios were incorporated (e.g., modified hydraulic control strategy, spool va lve material, friction discs, as we ll as a newly-developed torque converter). These modifications were not estimated in the

as calculated for the 8-speed AT. However the 8-speed AT gear trai n subsystem increased

cost by $74.40 resulting in a net incremen tal direct manufacturing cost of $+61.84. analysis since they are independent of th e gear ratio addition and modifications. As shown in Table 2-1 many of the transmission subsystems where deemed cost neutral. Much of the cost analysis wo rk was focused on the cost diffe rence in the gear train and internal clutch subsystems. An internal clutch subsystem co st save of $12.56 w in

2-13Report FEV 07-069-303 October 3, 2011 

## Table 2-1: System Cost Model Analysis Temp late Illustrating the Incremental Subsystem Costs Roll Up for an 8-Speed AT compared to a 6-Speed AT

Material Labor Burden End Item Scrap SG&A Profit ED&T-R&D 02 TRANSMISSION SYSTEM

1 01 EXTERNAL COMPONENTS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 2 02 CASE(S): - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 3 03 GEAR TRAIN: 49.58 $ 40.81 $ 92.84 $ 183.24 $ 0.92$ 12.08 $ 11.11 $ 4.59$ 28.70 $ -$ 211.94 $ 4 04 INTERNAL CLUTCHES: 75.79 $ 27.13 $ 78.47 $ 181.39 $ 1.34$ 12.69 $ 11.51 $ 4.58$ 30.12 $ -$ 211.50 $ 5 05 LAUNCH CLUTCHES: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 6 06 OIL PUMP & FILTER: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 7 07 MECHANICAL CONTROLS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 8 08 ELECTRICAL CONTROLS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 9 09 PARK MECHANISM: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 10 10 MISCELLANEOUS ITEMS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $

125.37 $ 67.94 $ 171.32 $ 364.63 $ 2.26 $ 24.77 $ 22.62 $ 9.17 $ 58.82 $ - $ 423.44 $

Material Labor Burden End Item Scrap SG&A Profit ED&T-R&D 02 TRANSMISSION SYSTEM

1 01 EXTERNAL COMPONENTS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 2 02 CASE(S): - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 3 03 GEAR TRAIN: 35.12 $ 21.57 $ 62.26 $ 118.95 $ 0.60$ 7.81 $ 7.19 $ 2.98$ 18.58 $ -$ 137.53 $ 4 04 INTERNAL CLUTCHES: 81.76 $ 31.27 $ 80.85 $ 193.87 $ 0.97$ 12.68 $ 11.69 $ 4.85$ 30.19 $ -$ 224.07 $ 5 05 LAUNCH CLUTCHES: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 6 06 OIL PUMP & FILTER: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 7 07 MECHANICAL CONTROLS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 8 08 ELECTRICAL CONTROLS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 9 09 PARK MECHANISM: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 10 10 MISCELLANEOUS ITEMS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $

116.88 $ 52.84 $ 143.11 $ 312.83 $ 1.57 $ 20.49 $ 18.88 $ 7.83 $ 48.77 $ - $ 361.60 $

Material Labor Burden End Item Scrap SG&A Profit ED&T-R&D 02 TRANSMISSION SYSTEM

1 01 EXTERNAL COMPONENTS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 2 02 CASE(S): - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 3 03 GEAR TRAIN: 14.46 $ 19.24 $ 30.58$ 64.28 $ 0.33$ 4.27 $ 3.92 $ 1.61$ 10.12 $ -$ 74.40 $ 4 04 INTERNAL CLUTCHES: (5.97) $ (4.13) $ (2.38) $ (12.49) $ 0.36$ 0.01$ (0.18) $ (0.27) $ (0.08) $ - $ (12.56) $ 5 05 LAUNCH CLUTCHES: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 6 06 OIL PUMP & FILTER: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 7 07 MECHANICAL CONTROLS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 8 08 ELECTRICAL CONTROLS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 9 09 PARK MECHANISM: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ SUBSYSTEM ROLL-UP Net Component/

10 10 MISCELLANEOUS ITEMS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $

8.49 $ 15.11$ 28.20 $ 51.80 $ 0.69 $ 4.27 $ 3.74 $ 1.34 $ 10.04 $ - $ 61.84 $ A ssembly Cost Impact to OEM Total Manufacturing

Cost (Component/ Assembly) Markup Total Markup Cost (Component/ Assembly) Total Packaging

Cost (Component/ Assembly)ItemSubsystem Sub-Subsystem Description Manufacturing SYSTEM & SUBSYSTEM DESCRIPTION NEW TECHNOLOGY PACKAGE COST INFORMATION 8 Speed ZF Automatic Transmission

SYSTEM & SUBSYSTEM DESCRIPTION BASE TECHNOLOGY PACKAGE COST INFORMATION 6 Speed ZF Automatic TransmissionItemSubsystem Sub-Subsystem Description Manufacturing Total Manufacturing

Cost (Component/ Assembly) Markup Total Markup Cost (Component/ Assembly) Total Packaging

Cost (Component/ Assembly) Net Component/ A ssembly Cost Impact to OEM

SUBSYSTEM ROLL-UP

SYSTEM & SUBSYSTEM DESCRIPTION INCREMENTAL COST TO UPGRADE TO NEW TECHNOLOGY PACKAGEItemSubsystem Sub-Subsystem Description Net Component/ A ssembly Cost Impact to OEM Total Manufacturing

Cost (Component/ Assembly) Markup Total Markup Cost (Component/ Assembly) Total Packaging

Cost (Component/ Assembly) Manufacturing

SUBSYSTEM ROLL-UP


## 2-14Report FEV 07-069-303 October 3, 2011 

### 2.2 Case Study #1202 Results 

## Case Study #1202 analyzed the direct incremental manufacturing cost for updating from a 6-speed, wet dual clutch transmissi on (DCT) to an 8-speed, wet DCT. 2.2.1 6-Speed DCT Hardware Overview – Baseline Technology Configuration



## Figure 2-4: Illustration of the Volkswag en DQ250 Wet Dual Clutch Transmission The baseline technology configuration selected for the analysis was the Volkswagen (VW) 6-speed, wet, dual clutch transmi ssion (DCT); model number DQ250. Other industry naming conventions for this technology configur ation include twin-clutch gearbox or dual shift gearbox (DSG). The basi c components of the DCT include a twin clutch pack assembly drivi ng two (2) coaxial input shafts . Power from the engine is transmitted to the input shafts through a dual-ma ss flywheel which is connected in series to the twin-clutch pack. Each input shaft, dependent on the selected gear, is designed to mesh with one (1) of two (2) output shafts. Upon reverse gear selection, there is an intermediate shaft which engages with both i nput shaft one (1) and output shaft two (2). There are four (4) shift fork s, two (2) on each output shaft, hydraulically activated into one of two positions from their neutral home position. The controls for the DCT, which include the hydraulic controls, electronic cont rols, and various sens ors and actuators, are 2-15Report FEV 07-069-303 October 3, 2011 

## integrated into a single module VW refers to as a Mechatronic unit. The total weight of the transmission module, including the dual-ma ss flywheel, is approximately 94 kg. The maximum output torque rating for the DQ250 transmission is 350Nm. 2.2.2 8-Speed DCT Hardware Overview – Baseline Technology Configuration 

## At the time of the study, there were no 8-speed DCTs available in the market to support the cost analysis. Therefore a modified appr oach was taken for this case study. Using the 6-speed wet DCT as the foundation, the FE V team developed some basic assumptions on how the 6-speed DCT could be modified to produce an 8-speed variant. Using the 6- speed parts and some concept sk etches, the team created a bill of material for the 8-speed DCT. The 8-speed DCT is only a simple c oncept of what an 8-speed DCT may look like at a high level; providing sufficient informa tion to develop an incremental direct manufacturing cost. Figure 2-5 provides a cross-section vi ew of the baseline 6-speed wet DCT.

(Source: Audi Service Training Manual, 6-speed twin-clutch gearbox 02E S tronic) 

## Figure 2-5: Cross-sectional illustration of the Volkswagen 6-Speed DCT

For the 8-speed DCT concept, the input, output and reverse drive shafts were extended between the 3 rd 

## and 4 th 

## gear such that a 7 th 

## and 8 th 

## synchronized gear set could be added 2-16Report FEV 07-069-303 October 3, 2011 

## in (Reference Figure 2-6 

## ). In addition to the added sync hronized gear sets, associated components such as shift forks, hydraulic cyli nders and pistons, fork detents, solenoids and hydraulic control valves were added to the BOM. These components are not shown in Figure 2-6 

## below. Further, additional considera tions for modifying the front and rear cases, valve body, channel plate, input shafts , output shafts and pump shaft were included in the assumptions.

8t

7t

Figure 2-6: 8-Speed Wet DCT Concept Illustration

Additional assumptions made by the DCT eval uation team while developing the 8-speed DCT concept included the following:

2-17Report FEV 07-069-303 October 3, 2011



## • The addition of the 7 th 

## an 8 th 

## gear to the 6-speed DCT doe s provide fuel efficiency savings
• Engine torque and transmission capacity are matched
• The target vehicle(s) can accommodate th e additional length of the transmission
• Additional length of output shafts do not cau se shaft bending issues which lead to NVH problems
• Additional length of the reverse shaf t does not cause shaft bending issues
• Center distances of the output shafts with in the transmission cases will not be the same for six and eight speed DCT transmissions
• Output shaft diameters and splines confi gurations will change to accommodate the seventh and eighth gears
• Change gear internal diameters and splin es will all change to accommodate the seventh and eighth gears
• Bearing supports for the output shafts ends will need to be adequately sized to support the torques and loads
• All input and output change gear outside diameters will change and the resulting ratios and number of teeth will fit in to the launch through overdrive ratio requirements
• Final drive ratios for the output driven gear and the two drive gears will change to accommodate the eight forward and one reverse gear ratios
• The schematics show a separate synchronizer assembly for both the 7 th 

## and 8 th 

## change gears
• The schematics shown with this repor t are only intended to represent theadditional and modified components required to go from a six-speed to an eightspeed DCT.
• These transmission schematics do not repr esent a fully functional design of an eight-speed DCT

2-18Report FEV 07-069-303 October 3, 2011 

### 2.2.3 Net Incremental Direct Manufacturing Cost Impact (DCT Analysis) 

## Table 2-2 shows the net incremental, direct ma nufacturing cost between the 6-speed wet DCT and 8-speed wet DCT. In the evaluation, the 8-speed wet DCT was analyzed to be more expensive to manufacture by approx $198. The major cost increment of the 8- speed DCT was the additional content in the mechanical controls subsystem at $106.15 Included in this add cost are the 7 th 

## and 8 th 

## gear synchronizers, hubs, shift fork assemblies, spool valves and solenoids. M odifications to the valve body to accommodate the additional function and hardware for the 7 th 

## and 8 th 

## gear set addition was also included in this subsystem. The next largest contributor to the added co st was the gear train subsystem at $64.04. Included in this subsyste m were the additional 7 th 

## and 8 th 

## input and output gears plus the additional modification to bot h input and output shafts and the reverse shaft. Modifications to the case accounted for the majority of remaining costs contributing $20.85 to the net incremental direct manufacturing cost.

2-19Report FEV 07-069-303 October 3, 2011 

## Table 2-2: System Cost Model Analysis Temp late Illustrating the Incremental Subsystem Costs Roll Up for an 8-Speed DC T compared to a 6-Speed DCT

Material Labor Burden End Item Scrap SG&A Profit ED&T-R&D 02 TRANSMISSION SYSTEM

1 01 EXTERNAL COMPONENTS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 2 02 CASE(S): 5.50 $ 1.19 $ 14.17$ 20.85 $ -$ -$ -$ -$ - $ -$ 20.85 $ 3 03 GEAR TRAIN: 20.23 $ 5.58 $ 38.23$ 64.04 $ -$ -$ -$ -$ - $ -$ 64.04 $ 4 04 INTERNAL CLUTCHES: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 5 05 LAUNCH CLUTCHES: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 6 06 OIL PUMP & FILTER: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 7 07 MECHANICAL CONTROLS: 47.26 $ 12.23 $ 36.26$ 95.75 $ 0.33$ 4.50$ 4.04$ 1.53$ 10.40 $ -$ 106.15 $ 8 08 ELECTRICAL CONTROLS: (Combined w/ Mechnical Controls) - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 9 09 PARK MECHANISM: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 10 10 MISCELLANEOUS ITEMS: 1.82 $ 2.78 $ 2.50$ 7.10 $ -$ -$ -$ -$ - $ -$ 7.10 $

74.82 $ 21.77 $ 91.16 $ 187.74 $ 0.33$ 4.50$ 4.04$ 1.53$ 10.40 $ - $ 198.14 $

Material Labor Burden End Item Scrap SG&A Profit ED&T-R&D 02 TRANSMISSION SYSTEM

1 01 EXTERNAL COMPONENTS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 2 02 CASE(S): - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 3 03 GEAR TRAIN: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 4 04 INTERNAL CLUTCHES: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 5 05 LAUNCH CLUTCHES: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 6 06 OIL PUMP & FILTER: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 7 07 MECHANICAL CONTROLS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 8 08 ELECTRICAL CONTROLS: (Combined w/ Mechnical Controls) - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 9 09 PARK MECHANISM: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 10 10 MISCELLANEOUS ITEMS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ -$ - $ -$ -$ -$ -$ -$ -$ -$ -$ -$

Material Labor Burden End Item Scrap SG&A Profit ED&T-R&D 02 TRANSMISSION SYSTEM

1 01 EXTERNAL COMPONENTS: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 2 02 CASE(S): 5.50 $ 1.19 $ 14.17$ 20.85 $ -$ -$ -$ -$ - $ -$ 20.85 $ 3 03 GEAR TRAIN: 20.23 $ 5.58 $ 38.23$ 64.04 $ -$ -$ -$ -$ - $ -$ 64.04 $ 4 04 INTERNAL CLUTCHES: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 5 05 LAUNCH CLUTCHES: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 6 06 OIL PUMP & FILTER: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 7 07 MECHANICAL CONTROLS: 47.26 $ 12.23 $ 36.26$ 95.75 $ 0.33$ 4.50$ 4.04$ 1.53$ 10.40 $ -$ 106.15 $ 8 08 ELECTRICAL CONTROLS: (Combined w/ Mechnical Controls) - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 9 09 PARK MECHANISM: - $ -$ -$ - $ -$ -$ -$ -$ - $ -$ - $ 10 10 MISCELLANEOUS ITEMS: 1.82 $ 2.78 $ 2.50$ 7.10 $ -$ -$ -$ -$ - $ -$ 7.10 $

74.82 $ 21.77 $ 91.16 $ 187.74 $ 0.33$ 4.50$ 4.04$ 1.53$ 10.40 $ - $ 198.14 $ SUBSYSTEM ROLL-UP Net Component/ Assembly Cost Impact to

OEM Total Manufacturing

Cost (Component/ Assembly) Markup Total Markup Cost (Component/ Assembly) Total Packaging

Cost (Component/ Assembly)

Sub-Subsystem Description Manufacturing SYSTEM & SUBSYSTEM DESCRIPTION NEW TECHNOLOGY PACKAGE COST INFORMATION 8-Speed Wet DCT

SYSTEM & SUBSYSTEM DESCRIPTION BASE TECHNOLOGY PACKAGE COST INFORMATION 6 Speed Wet DCTItemSubsystem Sub-Subsystem Description Manufacturing

Net Component/ Assembly Cost Impact to

OEM

SUBSYSTEM ROLL-UP

SYSTEM & SUBSYSTEM DESCRIPTION INCREMENTAL COST TO UPGRADE TO NEW TECHNOLOGY PACKAGE Total Manufacturing

Cost (Component/ Assembly) Markup Total Markup Cost (Component/ Assembly) Total Packaging

Cost (Component/ Assembly)ItemSubsystemItemSubsystem Sub-Subsystem Description Net Component/ Assembly Cost Impact to

OEM Total Packaging

Cost (Component/ Assembly)

SUBSYSTEM ROLL-UP Total Manufacturing

Cost (Component/ Assembly) Markup Total Markup Cost (Component/ Assembly) Manufacturing



## 2-20Report FEV 07-069-303 October 3, 2011 

## 3 Glossary of Terms Assembly: generally refers to a group of interdep endent components joined together to perform a defined function (e .g., turbocharger assembly, high pressure fuel pump assembly, high pressure fuel injector assembly). Buy: is the terminology used to identify thos e components or assemblies as ones in which a manufacturer would purchase versus manufacture. All parts designated as a “buy” part, within the analysis, only have a net component cost pr esented. Typically these types of parts are considered commod ity purchase parts havi ng industry established pricing. CBOM (Comparison Bill of Materials): is a system bill of materials, identifying all the subsystems, assemblies, and components asso ciated with the technology configurations under evaluation. The CBOM records all the high level details of the technology configurations under study, identif ies those items which have cost implications as a result of the new versus base t echnology differences, documents the study assumptions, and is the primary document for capturing input from the cross functional team. Component: is the lowest level part w ithin the cost analysis. An assembly is typically made up of several components acting together to perform a functi on (e.g., the turbine wheel in a turbocharger assembly). Howe ver, in some cases a component can act independently performing a function within a sub-subsystem or subs ystem (e.g., exhaust manifold within the exhaust subsystem). Cost Estimating Models : are cost estimating tools, external to the Design Profit® software, used to calculate operation and pr ocess parameters for primary manufacturing processes (e.g., injection molding, die cas ting, metal stamping, forging). Key information calculated from the costing estima ting tools (e.g., cycle times, raw material usage, equipment size) is inputted into th e Lean Design® process maps supporting the cost analysis. The Excel ba se cost estimating models ar e developed and validated by Munro & Associates. Costing Databases : refer to the five (5) core databa ses which contain all the cost rates for the analysis. The material database lists all the materials used throughout the analysis along with the estimated price/pound for each. The labor database captures various automotive, direct labor, manufacturing jobs (supplier and OEM), along with the associated mean hourly labor rates. The manufacturing overh ead rate database contains the cost/hour for the various pieces of manufacturing equipmen t assumed in the analysis. A mark-up database assigns a percentage of ma rk-up for each of the four (4) main markup categories (i.e., end-item scrap, SG&A, profit, and ED&T), ba sed on the industry, supplier size, and complexity classification. The fifth database, th e packaging database, contains packaging options and costs for each case.

3-21Report FEV 07-069-303 October 3, 2011 

## Lean Design® (a module within the Design Profit® software): is used to create detailed process flow charts/process maps. Lean Design® uses a series of standardized symbols, each base symbol representing a group of similar manuf acturing procedures (e.g., fastening, material modifications, in spection). For each group, a Lean Design® library/database exists containing standard ized operations along with the associated manufacturing information and specifications for each operation. The information and specifications are used to generate a ne t operation cycle time. Each operation on a process flow chart is represented by a base symbol, operation desc ription, and operation time, all linked to a Lean Design® library/database. Make: is the terminology used to identify thos e components or assemblies as ones in which a manufacturer would produce internally versus purchase. All parts designated as a “make” part, within the analys is, are costed in full detail. MAQS (Manufacturing Assumption and Quote Summary) Worksheet : is the standardized template used in the an alysis to calculate the mass production manufacturing cost, including supplier mark -up, for each system, subsystem and assembly quoted in the analysis . Every component and assembly costed in the analysis will have a MAQS worksheet. The worksheet is based on a standard OEM (original equipment manufacturer) quote sheet modified for improved costing transparency and flexibility in sensitivity studies . The main feeder documents to the MAQS worksheets are process maps and the costing databases. MCRs (Material Cost Reductions): is a process employed to identify and capture potential design and/or manufacturing optim ization ideas with the hardware under evaluation. These savings could potentially reduce or increase the differential costs between the new and base technology configurations, depending on whether an MCR idea is for the new or the base technology. Net Component/Assembly Cost Impact to OEM : is defined as the net manufacturing cost impact per unit, to the OEM, for a defined component, asse mbly, subsystem or system. For components produced by the supplier base, the net manufacturing cost impact to the OEM includes total manufacturing costs (material, labor, and manufacturing overhead), mark-up (end-item scrap costs, selling, general and administrative costs, profit, and engineeri ng design and testing co sts) and packaging costs. For OEM internally manufactured co mponents, the net manufacturing cost impact to the OEM includes total manufacturing cost s and packaging costs; mark-up costs are addressed through the application of an indirect cost multiplier. NTAs (New Technology Advances): is a process employed to identify and capture alternative advance technology ideas which coul d be substituted for some of the existing hardware under evaluation. These advan ced technologies, thr ough improved function

3-22Report FEV 07-069-303 October 3, 2011 

## and performance, and/or cost reductions, coul d help increase the overall value of the technology configuration. Powertrain Package Proforma : is a summary worksheet comparing the key physical and performance attributes of the technol ogy under study with those of the corresponding base configuration. Process Maps : are detailed process flow charts used to capture the operations and processes, and associated key manufactu ring variables, invol ved in manufacturing products at any level (e.g., vehicle, sy stem, subsystem, assembly, component). P-VCSM (Powertrain–Vehicle Cl ass Summary Matrix): records the technologies being evaluated, the applicable vehicle cla sses for each technology, and key parameters for vehicles or vehicle systems that have been selected to repr esent the new technology and baseline configurations in each vehicle class to be costed. Quote: refers to the analytical process of establishing a cost for a component or assembly. Sub-subsystem: refers to a group of interdepende nt assemblies and/or components, required to create a functioning sub-subsystem. For example, the air induction subsystem contains several sub-subsyste ms including the following: tur bocharging, heat exchangers, and pipes, hoses and ducting. Subsystem: refers to a group of interdependent sub-subsystems, assemblies and/or components, required to create a functioning s ubsystem. For example, the engine system contains several subsystems including the following: crank drive subsystem, cylinder block subsystem, cylinder head subsystem, fuel induction subsystem, and air induction subsystem. Subsystem CMAT (Cost Model Analysis Templates): is the document used to display and roll up all the sub-subsystem, assembly and component incremental costs associated with a subsystem (e.g., fuel induction, ai r induction, exhaust ), as defined by the Comparison Bill of Material (CBOM). Surrogate part : refers to a part similar in fit, fo rm and function as the part required for the cost analysis. Surrogate parts are sometim es used in the cost analysis when actual parts are unavailable. The cost of a surrogate pa rt is considered equivalent to the cost of the actual part. System: refers to a group of interdependent subsystems, sub-subsystems, assemblies and/or components, working t ogether to create a vehicle primary function (e.g., engine system, transmission system, brake syst em, fuel system, suspension system).

3-23Report FEV 07-069-303 October 3, 2011



## 3-24 System CMAT (Cost Mode l Analysis Template): is the document used to display and roll up all the subsystem incremental costs associated with a system (e.g., engine, transmission, steering), as defined by the CBOMs.