In this paper we propose a quantitative method for optimizing the design tasks at the product, process, and system level based on predicted system performance. We develop a set of models for a production system that comprises two plants: manufacturing and assembly, with a finished-good inventory in between, and seek to optimize the part design, tolerancing, production and inventory control concurrently. Such an approach provides an efficient manufacturing feedback loop for the design tasks and can significantly shorten the product development lead-time. A case study of an aircraft tube production system is used to illustrate this methodology.

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