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3DCS for CATIA V5 follows CATIA's parent/child rule when applying Moves, Tolerances, and Measurements, (MTMs), during the simulation. During this process the tolerances are applied first to the defined parts, then it applies the assembly moves and then it takes the measurement.  Applying the MTMs starts with the inner most part (Child) and works its way out to the outer most top final assembly product (Parent), treating each subassembly as its own minor tolerance analysis model.  Therefore, the locations of the MTMs are critical to the accurate simulation of the tolerance analysis model.