Yee Mey Goh

Cost Engineering for manufacturing: Current and future research

The article aims to identify the scientific challenges and point out future research directions on Cost Engineering. The research areas covered in this article include Design Cost; Manufacturing Cost; Operating Cost; Life Cycle Cost; Risk and Uncertainty management and Affordability Engineering. Collected information at the Academic Forum on Cost Engineering held at Cranfield University in 2008 and further literature review findings are presented. The forum set the scope of the Cost Engineering research, a brainstorming was held on the forum and literatures were further reviewed to understand the current and future practices in cost engineering. The main benefits of the article include coverage of the current research on cost engineering from different perspectives and the future research areas on Cost Engineering.

Uncertainty in Through-Life Costing–-Review and Perspectives

Estimating through-life cost (TLC) is an area that is critical to many industrial sectors, and in particular, within the defense and aerospace where products are complex and have extended life cycles. One of the key problems in modeling the cost of these products is the limited life-cycle information at the early stage. This leads to epistemic and aleatory uncertainty within the estimation process in terms of data, estimation techniques, and scenarios analysis. This paper presents a review of the uncertainty classification in engineering literature and the nature of uncertainty in TLC estimation. Based on the review, the paper then presents a critique of the current uncertainty modeling approaches in cost estimation and concludes with suggestion for the requirement of a different approach to handling uncertainty in TLC. The potential value of imprecise probability should be explored within the domain of TLC to assist cost estimators and decision makers in understanding and assessing the uncertainty. The implication of such a representation in terms of decision making under risk and decision making under uncertainty is also discussed.

Uncertainty in competitive bidding – a framework for product–service systems

Owing to servitisation, manufacturing companies are increasingly required to compete through the provision of services around their products. The contracts for these services are often allocated through competitive bidding where the potential suppliers submit a price bid to the customer. The pricing decision is influenced by various uncertainties. This article proposes a conceptual framework depicting these influencing uncertainties on the bidding strategy. This framework is based on three empirical studies with industry investigating different viewpoints on the decision-making process. The intention is to support the pricing decision when competitively bidding for a service contract. The framework can be applied to specific competitive bidding situations to identify the influencing uncertainties, model them and depict their influences on the pricing decision.

Information Maturity Approach for the Handling of Uncertainty within a Collaborative Design Team

At the embodiment stage of the product development process (PDP), the definition of mechanisms that allow actors in the design process to exchange immature (e.g. uncertain, incomplete) information is of great importance to ensure reliable communication among actors and for the good progress of the process. Computing systems, such as PDM systems and CSCW systems, are hard to cope with immature design information. This paper presents how a maturity framework can improve the collaborative design process. The focus is put on the collaboration between designers and engineers.

Estimating Cost at the Conceptual Design Stage to Optimize Design in terms of Performance and Cost

In the highly competitive business environment, cost estimation is a strategic tool, which can be used to assist decision making with regard to products throughout their life cycle. 70 to 80 percent of the life-cycle costs of a product are determined by decision taken by designers during the early design stages. Therefore it is important to estimate and optimise cost as early and as accurately as possible. The main aim of this research is to use typically available information at the conceptual stage of design and estimate cost in order to optimise design in terms of performance and cost. The main objective is to employ Design of Experiments (Taguchi method) to use the sparse information more effectively in order to estimate the cost of a product at the early design stage. This paper presents the current status of the research activity. A case study is introduced which illustrates the initial applications of the optimization process. Conclusions are then discussed and the future research described.

HOLISTIC ENGINEERING DESIGN: A COMBINED SYNCHRONOUS AND ASYNCHRONOUS APPROACH

To aid the creation and through-life support of large, complex engineering products, organizations are placing a greater emphasis on constructing complete and accurate records of design activities. Current documentary approaches are not sufficient to capture activities and decisions in their entirety and can lead to organizations revisiting and in some cases reworking design decisions in order to understand previous design episodes. Design activities are undertaken in a variety of modes; many of which are dichotomous, and thus each require separate documentary mechanisms to capture information in an efficient manner. It is possible to identify the modes of learning and transaction to describe whether an activity is aimed at increasing a level of understanding or whether it involves manipulating information to achieve a tangible task. The dichotomy of interest in this paper is that of synchronous and asynchronous working, where engineers may work alternately as part of a group or as individuals and where different forms of record are necessary to adequately capture the processes and rationale employed in each mode. This paper introduces complimentary approaches to achieving richer representations of design activities performed synchronously and asynchronously, and through the undertaking of a design based case study, highlights the benefit of each approach. The resulting records serve to provide a more complete depiction of activities undertaken, and provide positive direction for future co-development of the approaches.

Information availability at the competitive bidding stage for service contracts

Purpose – The purpose of this paper is to explore the information that manufacturing companies have available when competitively bidding for service contracts. Design/methodology/approach – A semi-structured interview study was undertaken with industrialists in various sectors, which are currently facing the issue of servitisation. Findings – One of the main findings was that, despite the novelty of the process, the decision makers at the competitive bidding stage have an understanding of the involved uncertainties. In particular, the uncertainty arising from the customer as the user of the product and evaluator of the competitive bids in addition to the uncertainty connected to the competitors were identified as the main influences on the pricing decision. Research limitations/implications – The research implications show the influences and considerations during the decision-making process at the competitive bidding stage for service contracts. These include the customer and the competitors. Practical im...

Facilitating design learning through faceted classification of in-service information

The maintenance and service records collected and maintained by engineering companies are a useful resource for the ongoing support of products. Such records are typically semi-structured and contain key information such as a description of the issue and the product affected. It is suggested that further value can be realised from the collection of these records for indicating recurrent and systemic issues which may not have been apparent previously. This paper presents a faceted classification approach to organise the information collection that might enhance retrieval and also facilitate learning from in-service experiences. The faceted classification may help to expedite responses to urgent in-service issues as well as to allow for patterns and trends in the records to be analysed, either automatically using suitable data mining algorithms or by manually browsing the classification tree. The paper describes the application of the approach to aerospace in-service records, where the potential for knowledge discovery is demonstrated.

A Case Study in Estimating Avionics Availability from Field Reliability Data

Under incentivized contractual mechanisms such as availability-based contracts the support service provider and its customer must share a common understanding of equipment reliability baselines. Emphasis is typically placed on the Information Technology-related solutions for capturing, processing and sharing vast amounts of data. In the case of repairable fielded items scant attention is paid to the pitfalls within the modelling assumptions that are often endorsed uncritically, and seldom made explicit during field reliability data analysis. This paper presents a case study in which good practices in reliability data analysis are identified and applied to real-world data with the aim of supporting the effective execution of a defence avionics availability-based contract. The work provides practical guidance on how to make a reasoned choice between available models and methods based on the intelligent exploration of the data available in practical industrial applications.

To cost an elephant: an exploratory survey on cost estimating practice in the light of product-service-systems

Businesses now contracting for availability are regarded as part of a paradigm shift away from the familiar ‘product and support’ business model. The main difference being that such businesses eventually commit to provide a service outcome via product-service-system. The research presented in this article investigates how current cost estimating practice relates with the idea of having as the point of focus for the analysis a product-service-system delivering service outcomes, rather than a product. Since the topic is in its infancy, an exploratory survey was designed and circulated via the Internet among practitioners with the aim of looking for initial patterns, ideas, and hypotheses, rather than to confirm existing ones. The picture that seems to emerge is that respondents would not necessarily see the representation and modeling of a product-service-system as being a precondition to estimate the cost of the service it provides. In line with most academic literature, respondents would rather consider the cost of providing a service via product-service-system as conceptually equivalent to the cost of the in-service stage of a durable product. Although not allowing for generalization, this research reveals paths that may be worth exploring further.