A trade-off cost model for the wiring harness product cost and the manufacturing
cost is established by analysing the key literature, and by investigating all the relevant
tasks associated with wire harnesses in the assembly plant. In this derived model, the
operations which generate the related manufacturing costs are determined and quantified
using a Full Time Equivalent modelling approach. This is used to develop a
comprehensive total manufacturing cost model which includes administration, inventory,
material handling, extra travel and obsolescence cost elements. The total manufacturing
cost generated in a year is divided by the number of individual part numbers for the
analysis performed in this work.