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Title: Developing beliefs about the cost of systems in a conceptual design phase
Author (s): Takai, Shun
Department/Lab Affiliations: Design Engineering Center
Intelligent Systems Center
Interdisciplinary Engineering
Keywords: Concept selection
Cost-tolerance function
Design matrix
Lifecycle cost
Issue Date: 2006
Publisher: American Society of Mechanical Engineers (ASME)
Citation: Takai, S., 2006, “Developing Beliefs about the Cost of Systems in a Conceptual Design Phase,” Proceedings of 2006 ASME International Mechanical Engineering Congress and Exposition, November 2006, Chicago, Illinois USA IMECE2006-15013.
Abstract: In a conceptual design phase, engineers need to estimate, as accurately as possible, the cost of system developed from each concept (cost of concept). If engineers overestimate cost, engineers may be forced to unnecessarily cancel system development. On the other hand, if engineers underestimate cost, the final system may not be as profitable as initially expected. When engineers make a critical decision to select a concept, the dilemma is that there is typically no or limited information to accurately estimate cost of concept. This paper proposes a belief-based approach for estimating a cost of system in a conceptual design phase. In the proposed approach, engineers benchmark existing systems in the market that are similar to the new system. For these benchmarked systems, engineers estimate costs by subtracting profit margins from observed prices. Engineers develop a distribution of cost for the new system from these estimated costs.
Type: Article - Conference proceedings
text
In Title: Proceedings of 2006 ASME International Mechanical Engineering Congress and Exposition November 2006, Chicago, Illinois USA
Copyright Notice: This material is presented to ensure timely dissemination of scholarly and technical work. Copyright and all rights therein are retained by authors or by other copyright holders. All persons copying this information are expected to adhere to the terms and constraints invoked by each author's copyright. In most cases, these works may not be reposted without the explicit permission of the copyright holder.
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titleDeveloping beliefs about the cost of systems in a conceptual design phase
contributor.authorTakai, Shun
contributor.deptlabDesign Engineering Center
contributor.deptlabIntelligent Systems Center
contributor.deptlabInterdisciplinary Engineering
subjectConcept selection
subjectCost-tolerance function
subjectDesign matrix
subjectLifecycle cost
date.issued2006
publisherAmerican Society of Mechanical Engineers (ASME)
identifier.citationTakai, S., 2006, “Developing Beliefs about the Cost of Systems in a Conceptual Design Phase,” Proceedings of 2006 ASME International Mechanical Engineering Congress and Exposition, November 2006, Chicago, Illinois USA IMECE2006-15013.
identifier.pub.URI
http://store.asme.org/product.asp?catalog_name=Conference%20Papers&category_name=General_IMECE2006TRACK-8&product_id=IMECE2006-15013
description.abstractIn a conceptual design phase, engineers need to estimate, as accurately as possible, the cost of system developed from each concept (cost of concept). If engineers overestimate cost, engineers may be forced to unnecessarily cancel system development. On the other hand, if engineers underestimate cost, the final system may not be as profitable as initially expected. When engineers make a critical decision to select a concept, the dilemma is that there is typically no or limited information to accurately estimate cost of concept. This paper proposes a belief-based approach for estimating a cost of system in a conceptual design phase. In the proposed approach, engineers benchmark existing systems in the market that are similar to the new system. For these benchmarked systems, engineers estimate costs by subtracting profit margins from observed prices. Engineers develop a distribution of cost for the new system from these estimated costs.
typeArticle - Conference proceedings
type.DCMITypetext
type.statusFinal version
rightsThis material is presented to ensure timely dissemination of scholarly and technical work. Copyright and all rights therein are retained by authors or by other copyright holders. All persons copying this information are expected to adhere to the terms and constraints invoked by each author's copyright. In most cases, these works may not be reposted without the explicit permission of the copyright holder.
rights.URI
http://journaltool.asme.org/common/pdfs/1903.pdf
relation.isPartOfProceedings of 2006 ASME International Mechanical Engineering Congress and Exposition November 2006, Chicago, Illinois USA
date.accessioned2007-04-11T17:00:48Z
date.available2008-05-08T18:55:39Z
identifier.persist.URI
http://scholarsmine.mst.edu/post_prints/DevelopingBeliefsAboutTheCostOfSy_09007dcc804f9fc5.html