Why do spreadsheets fail for cost forecasting in automotive manufacturing?

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The problem with spreadsheets for cost forecasting.

Spreadsheets fail for cost forecasting because they rely on static inputs, manual updates, and disconnected ownership, while automotive costs change continuously during execution. 

Excel works for analysis, not for operational forecasting. 

Why spreadsheet failure happens.

  • Assumptions change faster than spreadsheets update

  • Versions proliferate across teams

  • No real-time link to execution data

  • Errors compound silently

Example of spreadsheets failing for cost forecasting.

Finance updates labor assumptions, but Program Management continues using an older file. Forecasts diverge without detection. 

Common mistakes automotive suppliers make.

  • Treating Excel as a system of record

  • Overestimating version control

  • Manual reconciliation

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How Campfire solves this.

Campfire replaces spreadsheet sprawl with a living model tied to execution data, preserving flexibility without sacrificing control. 

#faq

Frequently asked questions.

Are spreadsheets ever appropriate?

Yes, for analysis, not operational forecasting.