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Thread: Budget Estimation

  1. #1

    Budget Estimation

    Hi guys,

    How do you start putting together a full list of expected expenses? I have been looking around this forum. I saw the two cost analysis examples on fsaeonline but when I saw Cornell's car costing ~$24K I knew something was off. Apparently these are based off of some kind of list of minimum cost parts list that grossly underestimate the actual cost of the car. I want to show a potential sponsor our expected expenses and the last thing I want to do is underestimate and have to ask for more money.
    If you have never built an FSAE car before its very hard to know what you have to even buy because we have no idea what kinds of parts are involved. There are general things. We know things we might have to buy like material for a frame, or an engine etc. But how do we know how much of all the materials nuts/bolts etc that we need. We also don't know what will get donated, what will get discounted etc. Do we have to simply sit down and just find every single part and it's cost from all the individual suppliers websites/contacts or is there a more effective way to do this?

    Thank You

  2. #2
    Senior Member
    Join Date
    Jul 2009
    Location
    Starkville, MS
    Posts
    299
    I would say if you estimate the cost of all the big parts of the car, including raw materials, and then about $10k for the trip to competition you will end up with a decent budget. I just happened to do this last week and it rounded out to about $50k for our car. This is probably an overestimate as we expect to get discounts/donations on some of the products. It would take maybe an hour to sit down and do this.
    --Dash Robinson
    --Mississippi State University

  3. #3
    Senior Member
    Join Date
    Oct 2008
    Location
    Raleigh, NC
    Posts
    232
    hsulaimon,

    Could you tell us more about your team? Where you are from? What other similar projects has your Uni worked on?

    Tips
    1. Depending on where you are located travel costs will be your biggest expense.
    2. What fabrication resources do you have? None? Basic metal working? Full CNC?
    -Out sourcing fabrication can increase costs fast. But is comparatively easy to get sponsored.
    3. Material and components. Yes for this you will need to make an estimate for each sub system for what is needed and make a material budget for your car.
    - Sort the list by components that cannot be re-used next year those than can be re-used.
    4. Start up costs. Do you have computers? Safety equipment? Lab space? A way to transport you Formula Car?
    5a. $24k is plenty to build a simple car that if it is well engineered could place top 20.
    5b. If you have to fly your team and car competition $24k might just cover your tickets.


    -William

  4. #4

    Two different things

    The cost of the car (as-manufactured), the cost of the car (in the cost report), and the budget needed to run the program are three entirely different numbers.

    With your volunteer/class labor, you may be able to build the car itself for slightly less than what the cost report says. Some purchased items will be much cheaper on the cost report than the actual cost to your team (engines, carbon, molds).

    However, the project budget is much larger than this! You'll have to wear out many sets of tires. You may want to buy software. You will end up making many parts twice. You need to transport the car and team to competition. Tools and shop supplies don't grow on trees.

    If you have a budget of $35,000 you will need absolutely everything to go right to win a competition with an experienced and capable team. You will operate on the absolute edge of solvency all year and will abandon features that you have calculated will make much bigger time gains than the cost costs you in the cost event.

    A rookie team, running a nearly free 600/4, with access to a machine shop and welder, and enough electrically and mechanically inclined members to not have to farm out much work, can do well for $30,000. The keys will be keeping the car simple and the project on track.
    Charles Kaneb
    Magna International
    FSAE Lincoln Design Judge - Frame/Body/Link judging area. Not a professional vehicle dynamicist.

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