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Rapid cost estimation of metallic components for the aerospace industry

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  • de Cos, Javier
  • Sanchez, Fernando
  • Ortega, Francisco
  • Montequin, Vicente

Abstract

This paper illustrates and compares the results of the application of two different approaches--non-parametric and artificial neural network techniques--for the rapid cost estimation of turbine components. This technique is a simple and automatic way for the estimation of the cost of a piece with no expert intervention. Three methods of estimation are compared: the projection pursuit method (PPR), the local polynomial approach (LOESS) and adaptive neural networks (ANNs). This comparative analysis serves to enhance current work that seeks to choose the optimum predictor model. The results confirm the validity of the neural network theory in this field of application, but not a clear superiority as compared with the non-parametric approach. The present research provides a new tool to avoid inadequate piece budgeting strategies. The use of these methods contributes to the minimisation of errors in the budgeting of new items.

Suggested Citation

  • de Cos, Javier & Sanchez, Fernando & Ortega, Francisco & Montequin, Vicente, 2008. "Rapid cost estimation of metallic components for the aerospace industry," International Journal of Production Economics, Elsevier, vol. 112(1), pages 470-482, March.
  • Handle: RePEc:eee:proeco:v:112:y:2008:i:1:p:470-482
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    References listed on IDEAS

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    5. Kearns, P., 1993. "Volatility and the Pricing of Interest Rate Derivative Claims," Papers 47, Rochester, Business - Ph.D.,.
    6. H'mida, Fehmi & Martin, Patrick & Vernadat, Francois, 2006. "Cost estimation in mechanical production: The Cost Entity approach applied to integrated product engineering," International Journal of Production Economics, Elsevier, vol. 103(1), pages 17-35, September.
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    Cited by:

    1. Loyer, Jean-Loup & Henriques, Elsa & Fontul, Mihail & Wiseall, Steve, 2016. "Comparison of Machine Learning methods applied to the estimation of manufacturing cost of jet engine components," International Journal of Production Economics, Elsevier, vol. 178(C), pages 109-119.

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