Product Life Cycle Cost Estimation Based On Activity-Based Costing

In the preliminary product design stage, obtaining accurate and detailed estimated cost information plays an important role for technical and economic evaluation of construction project, equilibrium between product performance and cost, reduction of product cost and pricing for new product. According to current parametric cost estimation, three limitations, the price fluctuation of resources market is not adequately considered, facticity of historical cost data are paid less attention to, foresightedness is lacked in estimation ,are pointed out in this dissertation. An advanced cost accounting conception—Activity Based Costing (ABC) to cost estimation is applied and the method of product lifecycle cost estimation based on ABC is studied systematically.In the second section, this paper builds a cost estimation model based on ABC after studying the product life cycle and product life cycle cost, this model is consisted by time dimension, logic dimension and data dimension, which is based on Hall three dimensional structure and systems engineering viewpoint. Especially, this paper gives a "logic dimension" model, which begins with product characteristic confirmation, then from activities driver volume and resource driver volume estimation to resource's price estimation.In the third section, gives a method to decide parameters based on Concurrent Function Deployment (CFD) and Principal Component Analysis (PCA) when studying the cost estimation research front—getting product main characteristics.The core of cost estimation based on ABC is constructing Activity Evaluation Relationship (AER). This paper studies the characteristics of Radial Basis Function (RBF) Neural Networks, specifies a particular process model for AER constructing method based on (RBF) Neural Networks ,realizes the AER using standard MATLAB function and analyses the many advantages of Neural Networks (NNs) comparing with Multiple Regression Analysis (MRA) in constructing AER.As a result of the effect of learning efficiency and "Kaizen", product cost will reduce gradually. This paper gives a method, which apply to estimate the activities driver volume used in production.Considering that new product's characteristics is sometimes uncertain and getting its complete historical data is difficult, this paper offers the basic model and main processes of a cost estimation method based on (ABC) and Fuzzy...