טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentCristal Asher
SubjectPart Cost Estimation at Early Design Phase
DepartmentDepartment of Design and Manufacturing Management
Supervisors Professor Emeritus Moshe Shpitalni
Dr. Gila Molcho
Full Thesis text - in Hebrew Full thesis text - Hebrew Version


Abstract

Researchers generally agree that 70% of part cost is determined during the early design stage. Despite the numerous research studies that have investigated the need for a cost estimation tool in the early design stages, designers rarely accurately estimate the costs of their designs.

The research involved an extensive review of the literature as well as a broad survey of industry in order to identify the main factors affecting the cost of a part and to quantify the factors determining quality.

The current research proposes a new method for estimating product cost. The method is based on a decision-making process with a small number of factors and a limited database, available to the designer at the early design stage.

The research investigated manufacturers' thought processes in the stage of preparing product price quotations and identified the cost factors that constitute the manufacturers' decision-making patterns.

Based on the cost estimation model, two tools for estimating production costs were developed in the course of this research.

The first tool is called Costing for Designers (CFD) and is intended to be used by designers to estimate product cost at the conceptual design stage based on a small number of parameters, available at the early stages of design. The tool was implemented successfully on several product series from different manufacturers.

The second tool is called Costing for Manufacturers (CFM) and is intended to be used by manufacturers to more accurately calculate manufacturing costs in order to give price quotes.

The results attained from these two tools demonstrate a marked improvement compared to previous solutions with respect to accuracy and effort required.