A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

Use Predictive Modeling to Decrease Product Cost during Product Design and Development?

Use Predictive Modeling to Decrease Product Cost during Product Design and Development?
olegshilovitsky
olegshilovitsky
28 January, 2009 | 2 min for reading

We are all concerned about how to decrease product cost. This is a top priority of users in today’s economic situation. But it was also a priority before 2008/9. Our primary goal is to provide systems that allows control over the cost of products. Since 80% of product cost is already defined at the stage of design and early product development, predicting cost, in my opinion, should be on the short list of PLM product developers and implementers.

 “Predictive modeling is the process by which a model is created or chosen to try to best predict the probability of an outcome” (Wikipedia).  Sounds complex, right? But predictive modeling technologies based on statistical data analyses are widely used today. Many systems analyze historical data and predict future behavior. A similar example of predictive modeling usage in PLM systems is evident in Customer Relation Management (CRM) Systems are analyzing customer level models to predict customer behavior in the future. For example, health care systems analyze existing customers to predict high-risk members; telecom operators use predictive analyses for cross-sell opportunities (by analyzing product combination patterns purchased by other customers), as well as customer churn. 

Now, how do you implement this? In my view, this is all about connectivity between your systems. Today’s design and engineering are very localized and have a limited view on what is going on outside, how customers uses their products, what happens with service departments, etc. If systems are to establish a connection between particular design decision and customer defect reports, extra expenses by suppliers etc., this information can be potentially reused to predict future cost and product defects. Even if it sounds ahead of its time, I’m pretty sure our future is there. More practical examples of predictive engineering are in the areas of FEA and other engineering analyzes. Accumulating statistical data in this area can provide good prediction results for product design connected to customer experience.

 I’d be glad to discuss with you potential scenarios of predictive modeling usage and… may be you already have some of them implemented… who knows?

 

Recent Posts

Also on BeyondPLM

4 6
5 July, 2010

Last week I wrote about PLM and Open Source Big Games. One of my conclusions was that PLM Open Source...

18 July, 2012

The topic of software licensing is one of the most debated in the context of industry transition to the cloud....

25 September, 2020

The abbreviation PLM often triggers many debates and questions. Starting from blunt questions about what is PLM to more serious...

31 May, 2010

Two PLM software providers were mentioned in Business Review USA in the list of top 5 American Enterprise Software Companies....

14 February, 2011

Apple is trending these days. Not surprising me. At the same time, I don’t want to make this post a...

5 October, 2015

Everyone likes innovation. It gives you good feeling and brings the whole power of imagination into your brain. If you...

30 August, 2010

I read the following article “Oracle v Google: Why?“. I found it as a very deep analysis of the latest...

25 March, 2015

I attended PI Congress in Dusseldorf last month. During the conference I had a chance to share my thoughts about...

26 June, 2009

Short note. Impressive video about how you can merge photo with 3D models on iPhone using 3DVIA tools.  3DVIA is...

Blogroll

To the top