This paper presents a simulator of the manufacturing process of induction motors. Its main purpose is to provide feedback in the form of motor cost and production scheduling during the process of motor design. The paper concentrates on modeling and simulating a factory, modeling production costs, and providing examples of how the design of electric motors can be improved by taking manufacturing information into account via software. The simulator uses principles of system dynamics and technical cost modeling to model the flows of materials and the evolution of product through manufacturing stages across the factory floor. The inputs to the simulator are blueprint data for motor design, and the status of the factory. The output from the simulator is cost and schedule information. The simulator also provides a mechanism whereby design variables can be tested for variations that produce cost improvements.