a. Explain your findings from the figure. b. Discuss why it is more important to spend time and money on the early stages of design than on the late stages of design.
Figure 1.17 shows the percent of cost committed and incurred as a function of time during the design of a product. The committed cost is the amount
of money allocated for the manufacturing of the product, while the incurred cost is the amount of money spent on the design.
a. 75% of the manufacturing cost is committed by the end of the design phase. Decision made after this phase can only influence 25% of the manufacturing cost. The incurred cost in the design phase is about 10%, changes in design phase are not as costly as in the manufacturing phase.
b. Spending time on perfecting the design is much cheaper than perfecting during the manufacturing because during design even a complete re-start would cost a small percentage. But in manufacturing the cost incurred would be high and hence re-start would be difficult.
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