Designing for cost

Parametric cost analysis is presently defined as the generation and application of equations to cost analysis; equations defining cost as a function of system-design parameters, performance parameters, or engineering process parameters, constitute a valuable tool for design-to-cost efforts. Cost sensitivity is expressed through the partial derivatives of these functions, furnishing insight into the magnitude and direction of cost change for given parameter changes. The robust design method thus obtained is a systematic and efficient approach for determining the near-optimum set of design parameters for cost, which highlights important factors affecting operation and performance as well as cost.