Establishing parametric design management to facilitate activity-based costing

Abstract

Parametric design is usually involved in technical analysis with an emphasis on mathematics. In management, even though some of the activities can be quantified, others may be appeared to be fuzzy concepts. This work attempts to establish a means to facilitate cost estimation by using parameters and equations to link design, manufacture, and management activities as a whole. All items under consideration must therefore be quantified so that they can be treated as parameters for further manipulation. The inputs of the system are primary parameters, usually related to design activity, and the derived parameters are produced from equations which describe the relationship among these parameters or empirical data. The design, manufacture, and management parameters are thus transformed to a unified measure, the cost. These primary parameters and empirical data in equations can be revised and adjusted dynamically so that an activity-based costing is obtained in the form of a spreadsheet. The parametric design management system containing all activities as a whole is thus supporting comparison, decision-making and planning. From this base a total design management approach is enabled.