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Design-for-Cost – An Approach for Distributed Manufacturing Cost Estimation



Minchul Lee, Boonserm Kulvatunyou


Researches have shown that design changes cost more in later stages of product development. Therefore, companies adopt Design-for-X methods to optimize product designs from many aspects in the early design stage. Despite such efforts, they often encounter several design changes during the commission of the production; and one of the main reasons is a failure to meet their target cost. Accurately estimating cost in the early design stage is difficult due to insufficient information. In particular, as production becomes more distributed cost estimation is also more difficult because information is more distributed. This paper introduces a cost estimation method to address this problem. It describes a distributed manufacturing situation and a cost breakdown framework. A use case is provided to illustrate how the framework allows for supply-chain cost negotiation and design adjustments in the early design stage.
Proceedings Title
Advances in Production Management Systems
Conference Dates
September 2-6, 2019
Conference Location
Austin, TX


Cost Estimation, New Product Introduction, Cost Breakdown Approach, Design-for- Cost, Supply Chain Management
Created September 2, 2019, Updated August 19, 2019