Development of early order stage cost estimation models for sheet metal component

Timely submission of an accurate cost estimate is vital to the survival of manufacturing support group companies. Late submission of quotation and uncompetitive cost estimate result in lost of customers while an underestimate quotation may reduce company’s profit and usually leads to problems later...

Full description

Saved in:

Bibliographic Details
Main Author:	Mohamed Rasin, Mohamad Zaihirain
Format:	Thesis
Language:	English
Published:	2010
Subjects:	Metal coating - Mathematical models Manufacturing industries - Costs
Online Access:	http://psasir.upm.edu.my/id/eprint/40937/1/FK%202010%2060R.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-upm-ir.40937
record_format	uketd_dc
spelling	my-upm-ir.409372015-10-06T01:18:43Z Development of early order stage cost estimation models for sheet metal component 2010-11 Mohamed Rasin, Mohamad Zaihirain Timely submission of an accurate cost estimate is vital to the survival of manufacturing support group companies. Late submission of quotation and uncompetitive cost estimate result in lost of customers while an underestimate quotation may reduce company’s profit and usually leads to problems later in the production process. Short response time and lack of necessary technical information are the main difficulties frequently faced during the early product cost estimation. This study develops mathematical models to estimate process cost of sheet metal components at early ordering stage from collection of intuitive cost data and machine operation time. Multivariate statistical analysis is carried out to examine the relative importance of part feature representation extracted from engineering part drawing and to establish the significance relationship between the part features and the unit part process cost. This study introduces a systematic statistical framework for modeling the development of cost estimation for sheet metal components. An analytical classification approach in identifying critical factors is also established. The results of analysis illustrate that number of standard holes, bounding box perimeter, inner curved cut-out length, number of sharp edges, number of bend lines and inner straight cut-out length are among the most significant factors that influence the unit part processing cost of sheet metal components. The stability and reliability of the developed models are tested with an independent dataset using Mean Absolute Deviation and Mean Percent Absolute Deviation as main performance indicators. Cost model developed from machine operation time shows the ability to provide an estimation of part process cost within an acceptable range of 12% accuracy while cost models developed from quoted price shows a more narrowed results within 9.0% accuracy. Both the statistical time-based and price-based models provide a better estimation results compared to estimation cost produced by the company’s estimators generated based on their intuitive knowledge and experience. The statistical quality of the established mathematical models proves that the methodology developed in the study is capable to generate acceptable mathematical models for estimating early part process cost within certain degree of accuracy. The models which utilize parametric techniques provide an acceptable alternative solution to estimate process cost for manufacturing sheet metal components at early order stage in the absence of complete technical part information. Metal coating - Mathematical models Manufacturing industries - Costs 2010-11 Thesis http://psasir.upm.edu.my/id/eprint/40937/ http://psasir.upm.edu.my/id/eprint/40937/1/FK%202010%2060R.pdf application/pdf en public phd doctoral Universiti Putra Malaysia Metal coating - Mathematical models Manufacturing industries - Costs
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
topic	Metal coating - Mathematical models Manufacturing industries - Costs
spellingShingle	Metal coating - Mathematical models Manufacturing industries - Costs Mohamed Rasin, Mohamad Zaihirain Development of early order stage cost estimation models for sheet metal component
description	Timely submission of an accurate cost estimate is vital to the survival of manufacturing support group companies. Late submission of quotation and uncompetitive cost estimate result in lost of customers while an underestimate quotation may reduce company’s profit and usually leads to problems later in the production process. Short response time and lack of necessary technical information are the main difficulties frequently faced during the early product cost estimation. This study develops mathematical models to estimate process cost of sheet metal components at early ordering stage from collection of intuitive cost data and machine operation time. Multivariate statistical analysis is carried out to examine the relative importance of part feature representation extracted from engineering part drawing and to establish the significance relationship between the part features and the unit part process cost. This study introduces a systematic statistical framework for modeling the development of cost estimation for sheet metal components. An analytical classification approach in identifying critical factors is also established. The results of analysis illustrate that number of standard holes, bounding box perimeter, inner curved cut-out length, number of sharp edges, number of bend lines and inner straight cut-out length are among the most significant factors that influence the unit part processing cost of sheet metal components. The stability and reliability of the developed models are tested with an independent dataset using Mean Absolute Deviation and Mean Percent Absolute Deviation as main performance indicators. Cost model developed from machine operation time shows the ability to provide an estimation of part process cost within an acceptable range of 12% accuracy while cost models developed from quoted price shows a more narrowed results within 9.0% accuracy. Both the statistical time-based and price-based models provide a better estimation results compared to estimation cost produced by the company’s estimators generated based on their intuitive knowledge and experience. The statistical quality of the established mathematical models proves that the methodology developed in the study is capable to generate acceptable mathematical models for estimating early part process cost within certain degree of accuracy. The models which utilize parametric techniques provide an acceptable alternative solution to estimate process cost for manufacturing sheet metal components at early order stage in the absence of complete technical part information.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Mohamed Rasin, Mohamad Zaihirain
author_facet	Mohamed Rasin, Mohamad Zaihirain
author_sort	Mohamed Rasin, Mohamad Zaihirain
title	Development of early order stage cost estimation models for sheet metal component
title_short	Development of early order stage cost estimation models for sheet metal component
title_full	Development of early order stage cost estimation models for sheet metal component
title_fullStr	Development of early order stage cost estimation models for sheet metal component
title_full_unstemmed	Development of early order stage cost estimation models for sheet metal component
title_sort	development of early order stage cost estimation models for sheet metal component
granting_institution	Universiti Putra Malaysia
publishDate	2010
url	http://psasir.upm.edu.my/id/eprint/40937/1/FK%202010%2060R.pdf
_version_	1747811852031623168

Development of early order stage cost estimation models for sheet metal component

Similar Items