We introduce a methodology for concurrent design that considers the allocation of tolerances and manufacturing processes for minimum cost. Cost is approximated as a hyperbolic function over tolerance, and worst-case stack-up tolerance is assumed. Two simulated annealing techniques are introduced to solve the optimization problem. The first assumes independent, unordered, manufacturing processes and uses a Monte-Carlo simulation; the second assumes well known individual process cost functions which can be manipulated to create a single continuous function of cost versus tolerance with discontinuous derivatives solved with a continuous simulated annealing algorithm. An example utilizing a system of friction wheels over the manufacturing processes of turning, grinding, and saw cutting bar stock demonstrates excellent results.