Automotive Sample Approval Costs Higher Than Estimated

The costs associated with sample inspection processes, known as PPAP (Production Part Approval Process) in the automotive industry, are significantly higher than commonly perceived. Analysis by material.one AG indicates that each process can cost between €5,000 and €9,000, a figure that does not fully account for expenses incurred by lower-tier suppliers and laboratories.

The complexity of modern vehicle supply chains, involving up to 30,000 individual parts each requiring approval, is a primary cost driver. Additionally, substantial manual effort is involved in coordination, planning, test plan creation, laboratory commissioning, tracking, and communication, often handled through traditional document exchange methods.

Material testing in accredited laboratories represents a significant expense. Limited laboratory capacity and varying requirements from different original equipment manufacturers (OEMs) can lead to repeated testing and delays. The critical link between sample approval and the start of production (SOP) means that any delays can have substantial financial repercussions.

Fragmented IT systems, including PLM, QMS, and LIMS, contribute to costs through manual data re-entry and potential errors. material.one AG proposes digital platforms leveraging AI as a solution to automate processes, improve data management, and enhance transparency across the supply chain, potentially reducing process costs by up to 50% and shortening lead times.