An Introduction of a Cost Estimation System for Model Changes

Abstract:

In order to be cost competitive in the consumer electronics industry, it is needed to estimate product costs earlier in the design phase. In this study, we reviewed quality and quantity cost estimation techniques to develop a cost estimation system. The qualitative cost estimation technique is used to store expert's knowledge in the form of rules or a decision tree, and quantitative cost estimation techniques is used to extract a similar cost basis based on historical cost data of products. Also, we developed a cost comparison system using these two methods.

• Periodical: Applied Mechanics and Materials (Volume 437)
• Pages: 981-984
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.437.981
• Online since: October 2013
• Authors: Heung Jae Cho, Jae Il Park*
• Keywords: Generic BOM, Quality Cost Estimation Techniques, Quantity Cost Estimation Techniques

References

[1] C. Ou-Yang, and T. S. Lin: Developing an Integrated Framework for Feature-Based Early Manufacturing Cost Estimation, Int. J. Adv. Manuf. Technol. Vol. 13-9 (1997), pp.618-629.

DOI: 10.1007/bf01350820

[2] S. Rehman, and M. D. Guenov: A Methodology for Modeling Manufacturing Costs at Conceptual Design, Comput. Ind. Eng., Vol. 35-4 (1998), pp.623-626.

DOI: 10.1016/s0360-8352(98)00174-0

[3] A. Layer, E. T. Brinke, F. V. Houten, H. Kals and S. Haasis: Recent and future trends in cost estimation, Int. J. Computer Integrated Manufacturing, 15: 6 (2002), pp.499-150.

DOI: 10.1080/09511920210143372

[4] M. Ficko, I. Drstvensek, M. Brezocnik, J. Balic, and B. Vaupotic: Prediction of Total Manufacturing Costs for Stamping Tool on the Basis of CAD-Model of Finished Product, J. Mater. Process. Technol., Vol. 164-165 (2005), pp.1327-1335.

DOI: 10.1016/j.jmatprotec.2005.02.013

[5] B. G. Kingsman, and A. A. De Souza: A Knowledge-Based Decision Support System for Cost Estimation and Pricing Decisions in Versatile Manufacturing Companies, Int. J. Prod. Econ., Vol. 53 (1997), pp.119-139.

DOI: 10.1016/s0925-5273(97)00116-3

[6] E. M. Shehab, and H. S. Abdalla: Manufacturing Cost Modeling for Concurrent Product Development, Rob. Comput. -Integr. Manufact. Vol. 17-4 (2001), p.341–353.

DOI: 10.1016/s0736-5845(01)00009-6

[7] R. L. Aldrich: Costing a Bill of Material/Route of Thermoformed Part Using Integrated MRPII Software, " Society of Manufacturing Engineers, Technical Paper(1995).

[8] M. S. Hundal: Design to Cost, Concurrent Engineering: Contemporary Issues and Modem Design Tools, H. R. Parsaei and W. G. Sullivan, eds., Chapman and Hall, London, (1993), p.330–351.

[9] A. Shtub, and Y. Zimerman: A Neural-Network-Based Approach for Estimating the Cost of Assembly Systems, Int. J. Prod. Econ., Vol. 32-2 (1993), p.189–207.

DOI: 10.1016/0925-5273(93)90068-v

[10] S. Cavalieri, P. Maccarrone, and R. Pinto: Parametric Vs Neural Network Models for the Estimation of Production Costs: A Case Study in the Automotive Industry, Int. J. Prod. Econ., Vol. 91-2 (2004), p.165–177.

DOI: 10.1016/j.ijpe.2003.08.005

[11] A. D. Hajare: Parametric Costing—Steel Wire Mill, " Proceedings of the Annual Convention of the Wire Association International (1998), p.172–178.