Target value design: using collaboration and a lean approach to reduce construction cost

Target Costing is an effective management technique that has been used in manufacturing for decades to achieve cost predictability during new products development. Adoption of this technique promises benefits for the construction industry as it struggles to raise the number of successful outcomes and certainty of project delivery in terms of cost, quality and time. Target Value Design is a management approach that takes the best features of Target Costing and adapts them to the peculiarities of construction. In this paper the concept of Target Value Design is introduced based on the results of action research carried out on 12 construction projects in the USA. It has been shown that systemic application of Target Value Design leads to significant improvement of project performance – the final cost of projects was on average 15% less than market cost. The construction industry already has approaches that have similarities with elements of the Target Value Design process or uses the same terminology, e.g. Partnering and Target Cost Contracts, Cost planning, etc. Following an exploration of the similarities and differences Target Value Design is positioned as a form of Target Costing for construction that offers a more reliable route to successful projects outcomes

Eco-design case-based reasoning tool: the integration of ecological quality function deployment and case-based reasoning methods for supporting sustainable product design

Several methods and tools have been developed to facilitate sustainable product design, but they lack critical application of the ecological design (eco-design) process and economic costing, particularly during the conceptual design phase. This research study overcomes these deficiencies by integrating eco-design approaches across all phases of the product life cycle. It proposes an eco-design case-based reasoning tool that is integrated with the recently developed ecological quality function deployment method, which supports sustainable product design. The eco-design case-based reasoning tool is an intuitive decision-support tool that complements the ecological quality function deployment method and proposes solutions related to customers’ requirements and the environmental and economic impacts of the product. The ecological quality function deployment method ensures that customers’ needs are considered within the context of product sustainability. The novelty of this article is in the development of the eco-design case-based reasoning tool which is based on the premise that if experiences from the ecological quality function deployment process can be captured in some useful form, designers can refer to and learn from them. This approach helps industrial decision-makers propose solutions by reusing solutions from similar cases and from their past experiences. The novelty is in the way the cases are structured and new cases are generated, using life-cycle assessments, cost estimations, and information about related manufacturing processes and means of transportation. This article demonstrates the applicability of the proposed approach through an industrial case study

Data-driven through-life costing to support product lifecycle management solutions in innovative product development

Innovative product usually refers to product that comprises of creativity and new ideas. In the development of such a new product, there is often a lack of historical knowledge and data available to be used to perform cost estimation accurately. This is due to the fact that traditional cost estimation methods are used to predict costs only after a product model has been built, and not at an early design stage when there is little data and information available. In light of this, original equipment manufacturers are also facing critical challenges of becoming globally competitive and increasing demands from customer for continuous innovation. To alleviate these situations this research has identified a new approach to cost modelling with the inclusion of product lifecycle management solutions to address innovative product development.The aim of this paper, therefore, is to discuss methods of developing an extended-enterprise data-driven through-life cost estimating method for innovative product development

Eco Global Evaluation: Cross Benefits of Economic and Ecological Evaluation

This paper highlights the complementarities of cost and environmental evaluation in a sustainable approach. Starting with the needs and limits for whole product lifecycle evaluation, this paper begins with the modeling, data capture and performance indicator aspects. In a second step, the information issue, regarding the whole lifecycle of the product is addressed. In order to go further than the economical evaluations/assessment, the value concept (for a product or a service) is discussed. Value could combine functional requirements, cost objectives and environmental impact. Finally, knowledge issues which address the complexity of integrating multi-disciplinary expertise to the whole lifecycle of a product are discussing.EcoSD NetworkEcoSD networ

Conceptualising the impact of information asymmetry on through-life cost: case study of machine tools sector

Information asymmetry (IA) in terms of contextual variety and importance is one of the most challenging aspects of through-life costing in product-service systems (PSS). IA is an imbalance in the information, data and knowledge shared among the parties involved in a contractual agreement. In manufacturing systems under PSS, interaction and effective communication among several parties who are involved in a contractual agreement, rely on the continuity and accuracy of information and context. In such systems, contextual variety exhibits complexity and uncertainty in through-life costing and subsequently in PSS cost assessment. Although the economic aspect of PSS has been studied previously, the impact of IA on through-life cost and for different PSS solutions has not been detailed. Considering manufacturing value chains, this paper introduces a new concept of PSS-hierarchy to perform through-life costing in the presence of IA for various PSS solutions. Moreover, this paper proposes a generic life-cycle model for different PSS solutions to assess the total cost of ownership (TCO). The proposed model has been developed to support decisions on contract design in manufacturing systems. This study considers the manufacturer, service provider and customer perspectives to develop the TCO model using a machine tool manufacturing case study

Target costing in construction: a comparative study

Target costing is an approach for the development of new products in the automobile industry, aimed at reducing their life-cycle costs while ensuring quality, reliability and other client requirements, by examining all possible ideas for cost reduction at the product planning, research and development and prototyping phases. Prior studies have attempted to adapt the manufacturing target costing process to the project-based nature of the construction industry. This paper aims to provide insights for future target costing implementations in the public sector projects. A qualitative comparison of three studies is performed through the lens of a set of target costing influencing factors. Similarities and differences revealed in the comparison suggest that factors related to supplier-base strategy and to the nature of customer are potentially relevant to future target costing implementations in public sector projects

Cost Decision Support in Product Design

The constraints addressed in decision making during product design, process planning and production planning determine the admissible solution space for the manufacture of products. The solution space determines largely the costs that are incurred in the production process. In order to be able to make economically sound decisions, costing data support must be integrated into the decision making processes. Regarding product design, the designer must be supplied with transparent costing data, that is ready for direct application. In this paper a functional architecture for costing data support during product design, as well as a corresponding data structure are presented

A Methodology for Variability Reduction in Manufacturing Cost Estimating in the Automotive Industry based on Design Features

Organised by: Cranfield UniversitySmall to medium manufacturing companies are coming to realise the increasing importance of performing fast and accurate cost estimates at the early stages of projects to address customers’ requests for quotation. However, they cannot afford the implementation of a knowledge-based cost estimating software. This paper explains the development and validation of a consistent methodology for the cost estimating of manufactured parts (focused on pistons) based on the design features. The research enabled the identification of the sources of variability in cost estimates, and the main one is the lack of formal procedures for the cost estimates in manufacturing SMEs. Finally, a software prototype was developed that reduces the variability in the cost estimates by defining a formal procedure, following the most appropriate cost estimating techniques.Mori Seiki – The Machine Tool Compan

Including design in e-manufacturing

This paper reviews major issues in the implementation of e-manufacturing, particularly the design aspects. It will examine recent progress, drawing out particular issues that are being addressed. Use will be made of the work by the author and colleagues to devise rule-based design and Internet-based control of machines to illustrate how these developments affect the integrated e-manufacturing environment. A dynamic Simulink model of the way e-manufacture is affected by overall design delays is used to evaluate general solutions for partial and complete e-based companies. These models show how changing to improved designs reduces WI