Cost Estimating and Risk Analysis in Manufacturing Processes
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The paper develops a methodology to identify and manage the risks involved in cost estimating a manufacturing process. A Case study is presented based on an automotive manufacturing company. The research starts by developing an ‘AS-IS’ process model of cost estimating for the manufacturing process. The causes of cost estimation inaccuracy provide the basis for a costing risk analysis within the company. The research has identified where the risk is, what are the different categories of risks and obviously how to control and manage them.
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