Developing a PDM/MRP integration framework to evaluate the influence of engineering change on inventory scrap cost
Quick response to market change has become a critical strategy for businesses in the global competitive environment. Since product design usually occupies a major time period of the product development process, shortening the time spent in the re-design stage has become an important issue for businesses. In this research, an environment integrating a PDM and an MRP application was proposed. By applying the concepts of Activity Based Costing (ABC), this environment can be used to support designers in a part re-design project to analyze inventory scrap costs. Using ARIS software, an eEPC model describing the re-design process in PDM, as well as the scrap cost analysis process, was developed. The major function of this integrated environment is to support the designer in making quick and proper decisions to reduce the inventory scrap cost of existing parts during the product re-design project.
pdm mrp engineering change eepc activity-based costing