Skip to main content
SpringerLink
Log in

Cost Estimate and Control in One-of-a-Kind Production

  • Chapter
  • First Online:
One-of-a-Kind Production

Abstract

As mentioned in previous chapters, one of the goals of One-of-a-Kind Production (OKP) is to achieve mass customization that aims to achieve economies of scope (or customization) and scale (mass production). In the traditional manufacturing paradigm, customization is in conflict with mass production with respect to product development lead-time and cost. Normally, a trade-off must be made between customization and low cost through mass production. However, the rapid developments of computer and Internet communication technologies, concurrent engineering and computer aided design methodology are starting to allow for a greater involvement of customers and suppliers in the development of a product, which formulates a value chain and is called the product development (PD) chain or product-oriented supply chain. The involvement of customers and suppliers in the whole product development life cycle through e-commerce technologies is a promising and possible approach of mass customization that has the potential of reaping substantial benefits; yet, it is not well studied as indicated by O’Grady and Chuang. In a PD chain, the cost control through a proper or optimal plan and a selection of various PD processes or suppliers are very critical to the success of one-of-a-kind production.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Becker J, Prischmann M (1993) Supporting the design process with neural network complex application of cooperating neural networks and its implementation. J Inf Sci Technol 3:79–95

    Google Scholar 

  • Bode J (1998) Neutral networks for cost estimation. J Cost Eng 40:25–30

    Google Scholar 

  • Bode J (2000) Neutral networks for cost estimation: simulations and pilot applications. Int J Prod Res 38(6):1231–1254

    Article  MATH  Google Scholar 

  • Casey J (1987) Digitizing speeds cost estimating. Am Mach Autom Manuf 131(1):71–73

    MathSciNet  Google Scholar 

  • Cawthorne-Nugent M, Da Luz Vieira J, Watson PA (1989) An intelligent knowledge-based system for cost estimating in the make-to-order environment. Comput Aided Eng 6(4):121–127

    Article  Google Scholar 

  • Gido J, Clements JP (2009) Successful project management, 4th edn. Thomson South-Western, Florence

    Google Scholar 

  • Goldberg J (1987) Rating cost-estimating software. Manuf Eng 98(2):37–41

    Google Scholar 

  • Huang GQ, Mak KL (2000) Modelling the customer–supplier interface over the world-wide web to facilitate early supplier involvement in the new product development. Proc Inst Mech Eng B Eng Manuf 214:759–769

    Article  Google Scholar 

  • Jiao JX, Ma QH, Tseng MM (2003) Towards high value-added products and services: mass customization and beyond. Technovation 23(10):809–821

    Article  Google Scholar 

  • Kals H, Brinke ET, Lutters E, Streppel T(1999) Integrated cost estimation based on information management. University of Ternte, Laboratory of Design, Production and Management. http://opm.wb.utwente.nl/staff/erik/phd/wgp99.pdf. Accessed Dec 2009

  • Kamarthi SV, Cohen PH, Demetter EC (1993) CMES: cost minimization and estimation system for sheet metal parts. Int J Flex Autom Integr Manuf 1(1):69–79

    Google Scholar 

  • Kawada M, Johnson DF (1993) Strategic management accounting—why and how. Manage Acc 75(2):32–38

    Google Scholar 

  • Koltai T, Lozano S, Guerrero F, Onieva L (2000) A flexible costing system for flexible manufacturing systems using activity based costing. Int J Prod Res 38(7):1615–1630

    Article  MATH  Google Scholar 

  • Krajewski LJ, Ritzman LP (1999) Master production scheduling: operations management, 5th edn. Addison-Wesley, Reading, p 725

    Google Scholar 

  • Marx WJ, Mavris DN, Schrage DP (1998) Knowledge based system integrated with numerical analysis tool for aircraft life cycle design. Artif Intell Eng Des Anal Manuf 12(3):211–229

    Article  Google Scholar 

  • Monden Y, Lee J (1993) How Japanese auto makers reduce costs. Manage Acc 75(2):22–26

    Google Scholar 

  • Niemand HP, Wolbold M (1994) Target costing: state of the art review. Manuf Compet Front 18(3):30–40

    Google Scholar 

  • O’Grady P, Chuang WC (2001) Research issues in e-commerce and product development. Int J Cybern Syst 32:775–796

    Article  MATH  Google Scholar 

  • Ostwald P (1984) Cost estimating, 2nd edn. Prentice Hall, Englewood Cliffs

    Google Scholar 

  • Ou-Yang C, Lin TS (1997) Developing an integrated framework for feature-based early manufacturing cost estimation. Int J Adv Manuf Technol 13(9):618–629

    Article  Google Scholar 

  • Pine BJ (1993) Mass customization. Harvard Business School Press, Boston

    Google Scholar 

  • Poirier CC, Reiter SE (1996) Supply chain optimization: building the strongest total business network. Berrett-Koehler Publishers, Inc, San Francisco

    Google Scholar 

  • Smart Team (2001) SmarTeam users guide, version 4.0. Smart Solutions Ltd, Kfar Saba. www.smarteam.com. Accessed June 2009

  • Smunt TL (1999) Log-linear and non-log-linear learning curve models for production research and cost estimation. Int J Prod Res 37(17):3901–3911

    Article  MATH  Google Scholar 

  • Tseng MM, Jiao JX (1996) Design for mass customization. Ann CIRP 45(1):153–156

    Article  Google Scholar 

  • Tu YL, Jiang ZB (1997) A neural network based approach for the quotation of a product in one-of-a-kind production. In: Proceedings of 1st international conference on engineering design and automation, March 18–21, Bangkok, Thailand, pp 307–310

    Google Scholar 

  • Tu YL, Kam JJ (2004) Manufacturing network for rapid tool/die making. In: Proceedings of the 2nd international workshop on supply chain management and information systems (SCMIS2004), July 7–9, 2004, Hong Kong, PR China

    Google Scholar 

  • Tu YL, Chu XL, Yang WY (2000a) Computer aided process planning in virtual one-of-a-kind production. Comput Ind 41:99–110

    Article  Google Scholar 

  • Tu YL, Xie SQ, Fung RYK (2000b) Rapid product development in a virtual production environment. In: Proceedings of IFAC symposium on manufacturing, modelling, management and control (MIM 2000), 12–14 July, Patras, Greece, pp 63–68

    Google Scholar 

  • Tu YL, Kam JJ, Fung RYK, Tang JF (2002a) Resource deployment in earlier product development stages. In: Proceedings of 4th international symposium on tools and methods of competitive engineering, TMCE 2002, April 22–26, Wuhan, P.R. China, pp 499–509

    Google Scholar 

  • Tu YL, Kam JJ, Xie SQ (2002b) Rapid one-of-a-kind product development in a global and virtual manufacturing environment. In: Proceedings of international conference on advanced production management systems (APMS 2002), 8–13 September, Eindhoven, The Netherlands

    Google Scholar 

  • Tu YL, Xie SQ, Fung RYK (2007) Product development cost estimation in mass customization. IEEE Trans Eng Manage 54(1):29–40

    Article  Google Scholar 

  • Wang CH, Bourne DA (1995) Using features and their constraints to aid process planning of sheet metal parts. In: Proceedings of IEEE international conference on robotics and automation, pp 1020–1026

    Google Scholar 

  • Wasti SN, Liker JK (1999) Collaborating with suppliers in product development: a US and Japan comparative study. IEEE Trans Eng Manage 46(4):444–461

    Article  Google Scholar 

  • Winbourne JP, Toolsie GM (1991) Computer-aided tool cost estimating (CATE). In: Proceedings of the 1991 ASME international computers in engineering conference and exposition, computers in engineering (New York), vol 1, pp 617–621

    Google Scholar 

  • Winston WL (1994) Operations research: applications and algorithms, 3rd edn. Duxbury Press, Belmont, pp 772–818

    Google Scholar 

  • Zhang YF, Fuh JYH (1998) Neural network approach for early cost estimation of packaging products. Comput Ind Eng 34(2):433–450

    Article  Google Scholar 

  • Zijim H (1984) The optimality equations in multichain denumerable state Markov decision processes with the average cost criterion: the unbounded cost case. CQM Note 22. Centre for Quantitative Methods, Philips BV Eindhoven

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Mechanical and Manufacturing Engineering, University of Calgary, 2500 University Drive NW, Calgary, AB, T2N 1N4, Canada

    Yiliu Tu

  2. CIM Systems Ltd, 142 Royal Oak Point NW, Calgary, AB, T3B 5C6, Canada

    Paul Dean

Authors
  1. Yiliu Tu
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Paul Dean
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Yiliu Tu .

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Springer-Verlag London Limited

About this chapter

Cite this chapter

Tu, Y., Dean, P. (2011). Cost Estimate and Control in One-of-a-Kind Production. In: One-of-a-Kind Production. Springer, London. https://doi.org/10.1007/978-1-84996-531-6_4

Download citation

  • DOI: https://doi.org/10.1007/978-1-84996-531-6_4

  • Published:

  • Publisher Name: Springer, London

  • Print ISBN: 978-1-84996-530-9

  • Online ISBN: 978-1-84996-531-6

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation