This paper proposes a method for integrating CAD and CAM in which both maximization of the product performance and minimization of the product manufacturing cost are sought. In order to obtain effectively and efficiently the optimum decision variables for the integrated product design and process design, a method for describing machine-parts shapes is first developed with main consideration being given to the description of the contact surfaces. Then, a multiphase decision making method using those data is constructed in which the decision making process is divided into three phases. The shapes, materials, and manufacturing methods of machine parts are then determined in steps according to multi-phase processes. Finally, the proposed methods are applied to the design of an industrial robot for demonstrating the effectiveness of the methods.

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