Use of the best-worst method to evaluate determinants affecting cost reduction of heat exchanger components in the Chinese automotive industry

Abstract

As China is a major automobile manufacturing and consumption country, cost reduction is an important indicator for the operation of the automobile industry. There are many automobile-related components and parts, and each component is important to the full functionality of the automobile. This article focuses on automobiles’ heat exchanger components (HECs) because they have important connections with the engine, transmission, body, and hydraulic systems of automobiles. Since the HECs are important functional parts of automobiles, it is worthwhile to investigate the determinants affecting the cost reduction of HECs in the automobile industry. Hence, the main purpose of this article is to evaluate the determinants affecting the cost reduction of HECs in the Chinese automotive industry using the best-worst method (BWM). Firstly, based on the literature and the opinions of industry and expert interviews, five evaluation dimensions and 20 evaluation factors were developed. Secondly, an empirical survey was conducted using the BWM and expert questionnaires. Finally, the study’s results revealed that: (1) “Research and development” is the most critical evaluation dimension that affects the cost reduction of HECs in the Chinese automotive industry; (2) The determinants affecting the cost reduction of HECs in the Chinese automotive industry were “value analysis/value engineering,”“production system optimization,”“developing industry standards,”“lightweighting,”“synchronous new product development,” and “waste reduction.” The empirical findings showed that the first three determinants were particularly important in the decision-making factors of cost reduction. In addition, this article discusses and suggests these determinants as a reference for future cost reduction evaluation of HECs in the Chinese automotive industry.