Charlotte, North Carolina
June 20, 1999
June 20, 1999
June 23, 1999
4.141.1 - 4.141.23
Computer Tools for Integrating Engineering Design and Engineering Economics
By William L. Bambrick
PDM Division of Inso Corporation1
“World-class” manufacturing companies have recognized the economic importance of the decisions made during the engineering design phase of the life of a product. 75% to 95% of a product’s cost is committed before manufacturing beginsi. Initiatives such as concurrent engineering, target costing, and quality function deployment are a result of this recognition of the impact the design process has on product cost.
Major investments in new application systems are being made by just about every major manufacturer to address the Year 2000 Problem, replace old mainframe systems, and to take advantage of the latest technological advances. These new systems are replacing systems that were supporting the supply chain or order fulfilment business process.
Very few manufacturers have an integrated set of systems in place that can be used to manage the product design and change process. Very little of the massive new system investment is going into tools for these processes. This paper outlines how an integrated set of systems can be developed from existing commercial software packages. How these systems can be used to proactively manage product cost is discussed.
The Importance of Integrating Engineering Design & Engineering Economics
“World-class” manufacturing companies have recognized the economic importance of the decisions made during the engineering design phase of the product life cycle. These companies are successfully competing in the rapidly changing world market place. They have effectively implemented such initiatives as lean manufacturing, continuous improvement, total quality management (TQM), concurrent engineering, target costing, and quality function deployment.
They recognize the fact that 75% to 95% of their product’s cost is committed before the product enters production (Figure 1). Target costing and quality function deployment
1 Formally known as Sherpa Corporation
Bambrick, W. (1999, June), Computer Tools For Integrating Engineering Design And Engineering Economics Paper presented at 1999 Annual Conference, Charlotte, North Carolina. https://peer.asee.org/8117
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