Enhancement of the design for cost methodology for indirect alteration costs

Indirect cost of engineering changes in drive industry represent increasing challenges for companies. Their high frequency and complex cost impacts regarding when and where change costs occur in the change process, makes it difficult to forecast and influence the cost outcomes. Currently direct cost (eg. changed material) are well mastered in industry, but indirect cost (e.g. engineering design, administration, testing, procurement) are not yet supported sufficiently. Early knowledge of amounts and effective measures to influence indirect costs can be crucial for the economic result on the market. Hence, fast and easy prediction- And influence methods are needed in change decisions. We present an approach for company-specific derivation and application of indirect cost reduction measures.