On the use of global cost modeling early in new product development

As a result of globalization, the Internet, and electronic collaboration tools, the design engineer now has the ability to direct design decisions based on actual supplier quotes much earlier in the design process. This allows the designer to make fact-based decisions on the design of components, the extent to which design for assembly and manufacturing techniques are applied, the use of common components, and the adoption of common architectures and shared platform elements. Additionally, cost modeling early in the new product development (NPD) process allows the design team to better meet cost targets once the product reaches the market. In this paper, a historical context on globalization and new product development is discussed. A framework for early cost modeling in the NPD process using the global supply chain is then proposed. An in- depth case study of a current design effort is detailed, highlighting the iterative design process using global cost modeling.