THE ROLE OF CONCURRENT ENGINEERING IN REDUCING PRODUCT DEVELOPMENT COSTS: AIRBUS CASE STUDY

Soumeya Toumi

Abstract


This study aims to identify the concurrent engineering (CE) technique and examine its role in reducing costs during product development phases by leveraging functional and technological practices that support cost reduction. Given the nature of the study, we adopt a descriptive and analytical approach. Based on a case study of Airbus, which is considered one of the most powerful companies in the global aeronautical sector, and which has adopted concurrent engineering technique through its project ACE (Airbus Concurrent Engineering), the findings indicate that concurrent engineering reduces the product’s overall cost by lowering design costs through the elimination of design errors and by reducing the number of engineering changes required during product design. Additionally, it reduces labor inputs by utilizing cross-functional teams. By incorporating supply chain requirements early in the development process, the overall cost decreases while maintaining a strong focus on quality improvement, thereby enhancing flexibility and responsiveness to market demands.


Keywords


Concurrent Engineering; cost reduction; product development; design; manufacturing;

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References


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DOI: http://dx.doi.org/10.12709/mest.14.14.02.26

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