Expert based approach to analyse and influence indirect cost of engineering changes

DS 87-4 Proceedings of the 21st International Conference on Engineering Design (ICED 17) Vol 4: Design Methods and Tools, Vancouver, Canada, 21-25.08.2017

Year: 2017
Editor: Anja Maier, Stanko Škec, Harrison Kim, Michael Kokkolaras, Josef Oehmen, Georges Fadel, Filippo Salustri, Mike Van der Loos
Author: Schmied, Christian; Gebhardt, Marcel; Mörtl, Markus; Lindemann, Udo
Series: ICED
Institution: 1: Technical University of Munich, Germany; 2: IPRI International Performance Research Institute, Germany
Section: Design Methods and Tools
Page(s): 663-672
ISBN: 978-1-904670-92-6
ISSN: 2220-4342


Indirect cost of engineering changes represent increasing challenges for companies. Their high frequency and complex cost impacts makes it difficult to estimate and influence the cost outcomes. Currently direct cost (eg. changed material) are well mastered in industry, but indirect cost (e.g. engineering design, administration, testing, procurement) are not yet supported sufficiently. Early knowledge of amounts and effective measures to influence indirect costs can be crucial for the economic result on the market. Hence, fast and easy prediction and influence methods are needed in practice. The article describes an application-oriented approach to analyze systems behaviour of indirect cost based on expert estimation and weighted influence matrices. As multiple domains within the company at different times involve during change process, a flexible, customizable and open model structure is proposed for solution. This enables to represent the characteristics of company individual and change case-specific indirect costs. We also present a corresponding approach for company-specific derivation and application of indirect cost reduction measures.

Keywords: Indirect cost, Engineering change, Multi- / Cross- / Trans-disciplinary processes, Complexity, Systems Engineering (SE)


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