Modem manufacturing companies are moving towards a system of concurrent engineering in order to improve competitiveness. One of the targets of concurrent engineering philosophy is to reduce both cost and time involved in product development at the conceptual stage of the design process. Therefore, if the product manufacturing cost is estimated at an early design stage, designers would be able to modify a design to achieve proper performance as well as a reasonable cost. This paper describes the development of an integrated prototype system for modelling product cost throughout the entire product development cycle. The proposed system is composed of a CAD solid modelling system, user interface, various knowledge bases, process optimisation, databases, design for assembly module and cost estimation module. The system is integrated with a material selection software, to facilitate the material selection process. To overcome uncertainty in the knowledge of cost model, a novel fuzzy logic model is developed and implemented in the developed system to generate reliable estimation of cost. Cost modelling of both a machining component and an injection-moulding component are considered in this research paper. The estimated cost for a moulded component included the costs of material, mould and processing. The main function of the system, besides estimating the product cost, is to generate initial process planning that includes generation and selection of machining processes, their sequence and their machining parameters. In addition, a feature-by-feature cost estimation report is generated using the proposed system to highlight the features of high manufacturing cost. The tangible benefit of implementing this system is that the product manufacturing cost can be estimated at the early stage of the product development cycle. Therefore, a quicker response to customers' expectations is generated. One of the advantageous features of this system is that it warns users of features that are costly and difficult to manufacture. In addition, users can modify the product design at any stage to achieve the targeted cost. Two case studies are demonstrated and discussed to validate the proposed system.