Abstract
Price estimation for the preparation of quotations is critical process for companies that have to struggle to get orders by offering competitive pricing. For machining companies, said process is complex because of the large amount of variation that can occur. In this case, a manufacturing expert is generally in charge of this task. However, manufacturing experts have several other important tasks to which they must attend. The use of software systems that automate the estimation of costs and prices is common, knowledge-based systems are one of the primary alternatives for two fundamental reasons: they behave the same way an expert would and they save and maintain all knowledge within the company regardless of who has worked on them. This paper covers the principal cost and price estimation methods and reviews the knowledge-based systems that have been implemented in the area of machined part manufacturing. Recommendations as to how future knowledge-based systems for the estimation of this type of pricing should develop are also included.
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
References
Adams, J. (2001). The feasibility of distributed web based expert systems. IEEE International conference on systems, man and cybernetics.
Aderoba A. (1997) A generalised cost-estimation model for job shops. International Journal of Production Economics 53: 257–263
Ahmadi J., Tirupati D. (1996) Oars: An order analysis and rescheduling system. Production Planning and Control 7(1): 86–95
Amaro G., Hendry L., Kingsman B. (1999) Competitive advantage, customisation and a new taxonomy for non make-to-stock companies. International Journal of Operations Production Management 19(4): 349–371
Arezoo B., Ridgway K., Al Ahmari A. M. (2000) Selection of cutting tools and conditions of machining operations using an expert system. Computers in Industry 42: 43–58
Beil D., Wein L. M. (2003) An inverse-optimization-based auction mechanism to support a multiattribute rfq process. Management science 49(11): 1529–1545
Ben-Arieh D. (2000) Cost estimation system for machined parts. International Journal of Production Research 38(17): 4481–4494
Ben-Arieh D., Li Q. (2003) Web-based cost estimation of machining rotational parts. Production Planning and Control 14(8): 778–788
Bidanda B., Kadidal M., Billo R. E. (1998) Development of an intelligent castability and cost estimation system. International journal of production research 36(2): 547
Boothroyd G., Reynolds C. (1989) Approximate cost estimates for typical turned parts. Journal of Manufacturing Systems 8(3): 185–193
Bouaziz Z., Ben Younes J., Zghal A. (2006) Cost estimation system of dies manufacturing based on the complex machining features. International Journal of Advanced Manufacturing Technology 28(3): 262–271
Brinke E. T., Lutters E., Streppel T., Kals H. (2004) Cost estimation architecture for integrated cost control based on information management. International Journal of Computer Integrated Manufacturing 17: 534–545
Calosso T., Cantamessa M., Vu D., Villa A. (2003) Production planning and order acceptance in business to business electronic commerce. International Journal of Production Economics 85: 233–249
Chan D. (2003) Expert system for product manufacturability and cost evaluation. Materials and Manufacturing Processes 18: 313–322
Chan D. S. K., Lewis W. P. (2000) The integration of manufacturing and cost information into the engineering design process. International journal of production research 38(17): 4413–4427
Chan F. (2005) Application of a hybrid case-based reasoning approach in electroplating industry. Expert Systems with Applications 29: 121–130
Chen K.-Z., Feng X.-A., Zhang B.-B. (2003) Development of computer-aided quotation system for manufacturing enterprises using axiomatic design. International Journal of Production Research 41(1): 171–191
Chougule R. G., Ravi B. (2006) Casting cost estimation in an integrated product and process design environment. International Journal of Computer Integrated Manufacturing 19: 676–688
Cooper R., Kaplan R. S. (1988) Measure costs right: Make the right decisions. Harvard Business Review 66(5): 96–103
Cunningham A., Smart R. (1993) Computer-aided parts estimation. AI Magazine 14: 39–49
Dewhurst P., Boothroyd G. (1988) Early cost estimating in product design. Journal of Manufacturing Systems 7(3): 183–191
Di Stefano P. (2006) Tolerances analysis and cost evaluation for production life cycle. International Journal of Production Research 44(10): 1943–1961
Doney L. D. (1971) Machine job shop prepares quotations by computer. Industrial Engineering 3: 47–51
Downs K. A., Trappey A. J. C. (1992) A sequential block approach to the design of a cost estimating system. Computers and Industrial Engineering 23: 423–426
Duan Y., Edwards J. S., Xu M. X. (2005) Web-based expert systems: Benefits and challenges. Information Management 42(6): 799–811
Duverlie P., Castelain J. M. (1999) Cost estimation during design step: Parametric method versus case based reasoning method. International Journal of Advanced Manufacturing Technology 15(12): 895–906
Er A., Dias R. (2000) A rule-based expert system approach to process selection for cast components. Knowledge-Based Systems 13(4): 225–234
Fuchs E. R. H., Field R. R., Roth R., Kirchain R. E. (2008) Strategic materials selection in the automobile body: Economic opportunities for polymer composite design. Composites Science and Technology 68(9): 1989–2002
González A., Dankel D. (1993) The engineering of knowledge based systems. Prentice Hall, Englewood Cliffs NJ
Grove R. (2000) Internet-based expert systems. Expert Systems 17(3): 129–135
Helo P. T. (2006) Product configuration analysis with design structure matrix. Industrial Management and Data Systems 106(7): 997–1011
Hicks C., McGovern T., Earl C. (2000) Supply chain management: A strategic issue in engineer to order manufacturing. International Journal of Production Economics 65(2): 179–190
Hvam L., Have U. (1998) Re-engineering the specification process. Business Process Management 4(1): 25–43
Hvam L., Malis M., Hansen B., Riis J. (2004) Reengineering of the quotation process: Application of knowledge based systems. Business Process Management Journal 10(2): 200–213
Hvam L., Pape S., Nielsen M. K. (2006) Improving the quotation process with product configuration. Computers in Industry 57(7): 607–621
Jahna-Shahi H., Shayan E., Masood S. H. (2001) Multivalued fuzzy sets in cost/time estimation of flat plate processing. International Journal of Advanced Manufacturing Technology 17(10): 751–759
Jiao J., Helander M. G. (2006) Development of an electronic configure-to-order platform for customized product development. Computers in Industry 57(3): 231–244
Jung J.-Y. (2002) Manufacturing cost estimation for machined parts based on manufacturing features. Journal of Intelligent Manufacturing 13: 227–238
Kadidal M., Bidanda B. (1993) A castability expert system. Computers Industrial Engineering 25: 99–102
Kennedy K., Shao D. (1989) The design, implementation and evaluation of a diagnostic expert system for the work order procedures for small manufacturing companies. Computers Industrial Engineering 17: 95–100
Kingsman B. G., de Souza A. A. (1997) A knowledge-based decision support system for cost estimation and pricing decisions in versatile manufacturing companies. International Journal of Production Economics 53: 119–139
Kingsman B., Hendry L., Mercer A., de Souza A. (1996) Responding to customer enquiries in make-to-order companies: Problems and solutions. International Journal of Production Economics 46–47: 219–231
Kirchain, R., & Field, F. R. (2001). Process-based cost modelling: Understanding the economics of technical decisions. In Encyclopedia of Materials Science and Engineering (Vol. 2, pp. 1718–1727). Oxford, UK: Elsevier.
Ko K. H., Pochiraju K., Manoochehri S. (2007) An embedded system for knowledge-based cost evaluation of molded parts. Knowledge-Based Systems 20: 291–299
Koonce D., Judd R., Sormaz D., Masel D. T. (2003) A hierarchical cost estimation tool. Computers in Industry 50(3): 293–302
Lan C. H. (2002) Optimal control of a multistage machining operation on a computer numerically controlled machine. International Journal of Advanced Manufacturing Technology 20(11): 807–811
Lan H., Ding Y. (2007) Price quotation methodology for stereolithography parts based on stl model. Computer and Industrial Engineering 52(2): 241–256
Lan H., Ding Y., Hong J., Huang H., Lu B. (2008) Web-based quotation system for stereolithography parts. Computers in Industry 59: 777–785
Layer A., Ten Brinke E., Van Houten F., Kals H., Haasis S. (2002) Recent and future trends in cost estimation. International Journal of Computer Integrated Manufacturing 15: 499–510
Liu, H., Gopalkrishnan, V., Quynh, K. T. N., & Ng, W. (2008). Regression models for estimating product life cycle cost. Journal of Intelligent Manufacturing. doi:10.1007/s10845-008-0114-4.
Locascio A. (2000) Manufacturing cost modeling for product design. International Journal of Flexible Manufacturing Systems 12: 207–217
Maropoulos P. G., Baker R. P. (2000) Integration of tool selection with design: Part 1 Feature creation and selection of operations and tools. Journal of Materials Processing Technology 107(1–3): 127–134
Maropoulos P. G., Baker R. P., Paramor K. Y. G. (2000) Integration of tool selection with design: Part 2 Aggregate machining time estimation. Journal of Materials Processing Technology 107(1–3): 135–142
Maropoulos P. G., Bramall D. G., McKay K. R. (2003) Assessing the manufacturability of early product designs using aggregate process models. Proceedings of the Institution of Mechanical Engineers: Part B—Engineering Manufacture 217(9): 1203–1214
Metaxiotis K. S., Askounis D., Psarras J. (2002) Expert systems in production planning and scheduling: A state-of-the-art survey. Journal of Intelligent Manufacturing 13: 253–260
Masmoudi F., Bouaziz Z., Hachicha W. (2007) Computer-aided cost estimation of weld operations. The International Journal of Advanced Manufacturing Technology 33(3–4): 262–271
Mohamed A., Celik T. (1998) An integrated knowledge-based system for alternative design and materials selection and cost estimating. Expert Systems with Applications 14: 329– 339
Mohamed A., Celik T. (2002) Knowledge based-system for alternative design, cost estimating and scheduling. Knowledge-Based Systems 15(3): 177–188
Muntslag D. R. (1994) Profit and risk evaluation in customer driven engineering and manufacturing. International Journal of Production Economics 36: 97–107
Niazi A., Dai J., Balabani S., Seneviratne L. (2006) Product cost estimation: Technique classification and methodology review. Journal of Manufacturing Science Engineering 128(2): 563–575
Ou Yang C., Lin T. S. (1997) Developing an integrated framework for feature-based early manufacturing cost estimation. International Journal of Advanced Manufacturing Technology 13(9): 618–629
Oduoza, C. F., & Xiong, M. H. (2008). A decision support system framework to process customer order enquiries in SMEs. The International Journal of Advanced Manufacturing Technology. doi:10.1007/s00170-008-1596-0.
Park J., Seo K. (2004) Incorporating life-cycle cost into early product development. Proceedings of the Institution of Mechanical Engineers, Part B (Journal of Engineering Manufacture) 218: 1059–1066
Qian L., Ben-Arieh D. (2008) Parametric cost estimation based on activity-based costing: A case study for design and developmen of rotational parts. International Journal of Production Economics 113: 805–818
Qiqin C., Shan J., Weidong L., Junmin D. (1996) Application of ie to the plan of production line in factory. Computers Industrial Engineering 31(3): 561–564
Ruffo M., Tuck C., Hague R. (2006) Cost estimation for rapid manufacturing—laser sintering production for low to medium volumes. Proceedings of the Institution of Mechanical Engineers, Part B (Journal of Engineering Manufacture) 220: 1417–1427
Seo K.-K., Park J., Wallace D. (2002) Prediction of the life cycle cost using statistical and artificial neural network methods in conceptual product design. International Journal of Computer Integrated Manufacturing 15: 541–554
Sharma R., Gao J. X. (2002) A progressive design and manufacturing evaluation system incorporating step ap224. Computers in Industry 47(2): 155–167
Shehab E. M., Abdalla H. S. (2001) Manufacturing cost modelling for concurrent product development. Robotics and Computer-Integrated Manufacturing 17(4): 341–353
Shehab E., Abdalla H. (2002a) An intelligent knowledge-based system for product cost modelling. International Journal of Advanced Manufacturing Technology 19(1): 49–65
Shehab E. M., Abdalla H. S. (2002b) A design to cost system for innovative product development. Proceedings of the Institution of Mechanical Engineers, Part B (Journal of Engineering Manufacture) 216: 999–1019
Shehab E. M., Abdalla H. S. (2006) A cost-effective knowledge-based reasoning system for design for automation. Proceedings of the Institution of Mechanical Engineers, Part B (Journal of Engineering Manufacture) 220: 729–743
Silva C., Roque L., Almeida A. (2006) Mapp–a web-based decision support system for the mould industry. Decision Support Systems 42(2): 999–1014
Stockton D., Wang Q. (2004) Developing cost models by advanced modelling technology. Proceedings of the Institution of Mechanical Engineers, Part B (Journal of Engineering Manufacture) 218: 213–224
Taiber J. G. (1996) Optimization of process sequences considering prismatic workpieces. Advances in Engineering Software 25(1): 41–50
Tang D., Eversheim W., Schuh G., Chin K. (2003) Concurrent metal stamping part and die development system. Proceedings of the Institution of Mechanical Engineers, Part B (Journal of Engineering Manufacture) 217: 805–825
Tu Y. L., Xie S. Q., Fung R. Y. (2007) Product development cost estimation in mass customization. IEEE Transactions on Engineering Management 54(1): 29–40
Veeramani D., Joshi P. (1997) Methodologies for rapid and effective response to requests for quotation (RFQs). IIE Transactions 29(10): 825–838
Venkatadri U., Srinivasan A., Montreuil B., Saraswat A. (2006) Optimization-based decision support for order promising in supply chain networks. International Journal of Production Economics 103: 117–130
Vidal, J., Lama, M., Bugarin, A., & Barro, S. (2003). Workflow-based information system for furniture budgeting. Emerging technologies and factory automation, 2003. Proceedings. ETFA ‘03. IEEE Conference.
Wang H., Zhou X. H., Ruan X. (2003) Research on injection mould intelligent cost estimation system and key technologies. International Journal of Advanced Manufacturing Technology 21(3): 215–222
Wang S., Shen W., Hao Q. (2006) An agent-based web service workflow model for inter-enterprise collaboration. Expert Systems with Applications 31(4): 787–799
Wei Y., Egbelu P. J. (2000) A framework for estimating manufacturing cost from geometric design data. International Journal of Computer Integrated Manufacturing 13: 50–63
Xie S. Q. (2006) A decision support system for rapid one-of-a-kind product development. International Journal of Advanced Manufacturing Technology 28: 643–652
Xie S. Q., Tu P. L., Aitchison D., Dunlop R., Zhou Z. D. (2001) A www-based integrated product development platform for sheet metal parts intelligent concurrent design and manufacturing. International Journal of Production Research 39(17): 3829– 3852
Xie S. Q., Tu Y. L., Liu J. Q., Zhou Z. D. (2001a) Integrated and concurrent approach for compound sheet metal cutting and punching. International Journal of Production Research 39(6): 1095–1112
Xie S., Tu Y., Fung R., Zhou Z. (2003) Rapid one-of-a-kind product development via the internet: A literature review of the state-of-the-art and a proposed platform. International Journal of Production Research 41(18): 4257–4298
Zhang Y. F., Fuh J. Y., Chan W. T. (1996) Feature-based cost estimation for packaging products using neural networks. Computers in Industry 32(1): 95–113
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
García-Crespo, Á., Ruiz-Mezcua, B., López-Cuadrado, J.L. et al. A review of conventional and knowledge based systems for machining price quotation. J Intell Manuf 22, 823–841 (2011). https://doi.org/10.1007/s10845-009-0335-1
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10845-009-0335-1