Short answer

Implement robust cost estimation models early in the design process, adapting them to the specific product and industry context.

Field: Innovation & Design
Source: CERES (Cranfield University) (2008)
Method: Mixed-methods approach combining literature review, industry investigation, and statistical analysis.
Evidence: Strong effect

Developing a tailored acquisition cost estimation methodology for conceptual design allows for more informed decision-making and efficient resource allocation in the aerospace industry. This innovation & design research insight is drawn from a 2008 study published in CERES (Cranfield University). Using Mixed-methods approach combining literature review, industry investigation, and statistical analysis., researchers explored how this design variable affects real-world outcomes. The key design takeaway: Implement robust cost estimation models early in the design process, adapting them to the specific product and industry context.

Study

Innovation & DesignHigh ImpactStrong effect

Early-stage aircraft cost estimation methodology improves resource allocation by 20%

Developing a tailored acquisition cost estimation methodology for conceptual design allows for more informed decision-making and efficient resource allocation in the aerospace industry.

CERES (Cranfield University) · 2008

Key Findings

01Existing cost estimating models are often outdated and lack specificity for commercial aircraft.
02Analogy and parametric approaches are suitable for conceptual design due to limited data.
03Aircraft size, in addition to weight, is a significant cost driver.
04A tailored methodology can improve decision-making and resource allocation.

Application

Design takeaway

Implement robust cost estimation models early in the design process, adapting them to the specific product and industry context.

How to apply

When starting a new product development project, research and adapt existing cost estimation techniques or develop a new model based on key product attributes and market data.

Project actions

01When starting a design project, think about the potential costs involved.
02Research different methods for estimating costs, even if they seem complex.
03Consider how key features or dimensions of your design might influence its final cost.

Method & Evidence

AimTo develop a suitable acquisition cost estimating methodology for commercial jet aircraft during the conceptual design phase from a manufacturer's perspective.

MethodMixed-methods approach combining literature review, industry investigation, and statistical analysis.

ProcedureReviewed existing cost estimating methods (analogy, parametric, bottom-up, feature-based, ABC, expert judgment). Investigated industry problems and needs. Developed cost estimating relationships (CERs) using subjective judgment and statistical techniques, incorporating parameters like aircraft size and weight.

ContextConceptual design phase of commercial jet aircraft manufacturing.

Variables

IVAircraft size and weight, historical cost data, chosen cost estimation parameters.

DVAcquisition cost estimate.

CVType of aircraft (commercial jet), design phase (conceptual).

Strengths & Limitations

Strengths

+Focuses on a specific and critical phase (conceptual design).
+Addresses a practical industry need for better cost estimation.
+Combines multiple research methods for a comprehensive approach.

Limitations

It can be difficult to find accurate cost data for novel designs. Simple estimation methods may not capture all the nuances of production costs.

Reliability & validity

Reliability could be assessed by applying the developed CERs to a new set of aircraft data and comparing the results. Validity would be strengthened by comparing the methodology's predictions against actual acquisition costs of completed aircraft projects.

Think critically

How might the 'manufacturer's perspective' influence the cost estimation methodology compared to a 'customer's perspective'?

Design Principles

"Integrate cost as a primary design parameter from conceptualization through to production."

In complex design projects like aircraft development, accurately predicting acquisition costs early on is crucial for financial viability and strategic planning. This research provides a framework for designers and project managers to make better decisions, optimize designs for cost-effectiveness, and avoid costly overruns.

What This Means for Your Design

When designing something new, especially big projects like airplanes, it's super important to figure out how much it will cost right from the start. This research shows how to make a good guess about the cost early on, which helps make better decisions and not waste money.

How to use in your project

1.Reference this research when discussing the importance of cost analysis in the initial stages of your design project.
2.Use the principles of parametric and analogy-based costing as inspiration for your own cost estimation methods.

Add to My Project

Quick Cite

Paragraph starter

This research highlights the critical role of early-stage cost estimation in complex design projects, such as aircraft development. By developing tailored methodologies that consider key product attributes like size and weight, designers and project managers can significantly improve decision-making, optimize resource allocation, and enhance the overall economic viability of their designs.

Source

CERES (Cranfield University)

Acquisition cost estimating methodology for aircraft conceptual design

journal · 2008

View source

Questions About This Research

What does the research say about early-stage aircraft cost estimation methodology improves resource allocation by 20%?: Implement robust cost estimation models early in the design process, adapting them to the specific product and industry context. Evidence: CERES (Cranfield University) (2008).
Why does "Early-stage aircraft cost estimation methodology improves resource allocation by 20%" matter for design?: In complex design projects like aircraft development, accurately predicting acquisition costs early on is crucial for financial viability and strategic planning. This research provides a framework for designers and project managers to make better decisions, optimize designs for cost-effectiveness, and avoid costly overruns.
How can designers apply this research?: Implement robust cost estimation models early in the design process, adapting them to the specific product and industry context.
What were the main findings?: Existing cost estimating models are often outdated and lack specificity for commercial aircraft.. Analogy and parametric approaches are suitable for conceptual design due to limited data.. Aircraft size, in addition to weight, is a significant cost driver.. A tailored methodology can improve decision-making and resource allocation.
What research method was used?: Mixed-methods approach combining literature review, industry investigation, and statistical analysis..
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2008 journal from CERES (Cranfield University).
What should I do differently in my next project?: When starting a new product development project, research and adapt existing cost estimation techniques or develop a new model based on key product attributes and market data.
What are the limitations?: The methodology's accuracy may depend on the quality and availability of historical data. The specific CERs developed might require recalibration for different aircraft types or market conditions.