Chapter 15 - Product Cost Estimating

Abstract

Estimating the best product price requires knowledge of all costs associated with product development and manufacture, including sales, support, administration, and so on, as well as competitors and customers. The ability to assemble this knowledge and synthesize it for accurate product cost estimation is essential if a business is to survive in a competitive market. This chapter focuses on the basics of cost analysis, cost estimate techniques, and manufacturing cost models that provide quick and accurate estimates of product manufacturing cost during the product design phase. Included are three case studies to illustrate detailed aspects of manufacturing cost estimation for practical engineering applications using cost estimate software.